While the market for residential properties in Arlington has slowed in recent months, the demand for rental properties is rising more rapidly. According to data from Axiometrics, annualized rental properties increased 5% from the first quarter and 3.6% over the second quarter of 2014.
The data may reflect a shift towards rental properties, as many consumers struggle to afford to purchase their own homes. The trend may persist in the near future if the economy doesn’t strengthen in the coming year.
State of Arlington Rental Market
Stephanie McCleskey, vice president of research for Axiometrics, said that the new data is positive for the rental markets. She said that there are a number of factors that could be driving the trend. “We’ve been seeing steady 5% rent growth in our monthly reporting, so the quarterly number is right on track. The second quarter is traditionally strong for growth, as school has ended and weather is warmer.”
However, the market also faces some challenges that need to be taken into consideration. McCleskey warns that the market for rentals could stall if prices rise at unsustainable levels.
How Does Arlington Compare to Other Cities?
According to the Axiometrics report, Arlington had the 20th fastest growing rent. While this means the market is growing much more quickly than most other parts of the country, it still pales in comparison to some other communities. The market for rental properties in Oakland grew 14.3% over the past year. The market for San Francisco is growing more slowly, but still outpaced all but five other regions at 9.3%.
The rising demand for properties in San Francisco is especially perplexing, because the city is already enduring the worst housing shortage in the country. The growing demand for apartments is clearly a boon for landlords, but is creating concerns for residents that are struggling to pay the rising rents.
The average rent for a one bedroom apartment in Arlington is $716. While rents are rising significantly faster than the national average, they are still much more affordable than most other communities.
Rental rates may start to slow in the future if more consumers have the capability of buying new properties and developers create more properties. Fortunately, the housing shortage in Arlington isn’t nearly as much of a problem in Arlington as many other areas and more developers are building properties throughout the city, which will make it easier for consumers to find properties at reasonable prices.