After years of seeing double-digit increase in rental prices across the U.S, renters are beginning to see a much more moderate rise.
Additional building is giving renters more options and adding to the country's housing supply, having added 310,300 multi-family buildings last year, a 21.4% growth from 2014, according to figures from the Commerce Department. The result? A median rent rise of a seasonally adjusted 2.6% in June of 2016, compared to the previous year, a number that matches the increase in average hourly wages, according to data gathered reported by Zillow.
Certain cities, such as New York City and Los Angeles, continue to report rises above the national average, however, rental costs in most suburban areas have decelerated after years of consistently exceeding earnings growth. The median monthly rent nationwide was $1,409.
Shelter accounts for a third of all consumer expenses, according to the consumer price index, which is why this moderation in rental price jumps can be so valued by consumers.