It’s getting hot in here


When we say hot we mean overpriced. In February, the rental prices for one and two-bedroom apartments shot up in like a Falcon-9 rocket in ten of the priciest rental markets. According to The Zumper National Rent Report it now costs renters a median of $1,220 and $1,464 to rent an average one or two-bedroom apartment.

California anyone?

When we think of over-priced we immediately think of California. The Golden State held 5 out of the top 10 spots on the list even as the state lost population to Idaho, Nevada, Utah, and Arizona.

The top rental markets are…

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Refinance applications drove the most traffic as homeowners looked to dump higher cost mortgages in favor of those juicy 3% loans. The 30-year-fixed-rate mortgages dropped from 3.81% to 3.71%.

Prospective home buyers stayed close to Shakira though and didn’t brave the elements. Mortgage applications to buy a home actually dropped 10% from one week earlier. Those hips don’t lie.

What’s driving this?

Not surprisingly rental investors are putting their money in less volatile rental markets like Texas, Florida and the mid-West. Speculative investors who banked on luxury condos in New York City are sitting on vacant units as millennials balked at paying $5,000 a month in rent. Imagine that.

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