Rents to Increase in 2006

An article on MSN.com indicating that rents are set to increase in 2006. The increases seen in 2005 will continue this year, mostly due to a constrained supply of rentable units. Because of the condo conversion craze which saw many apartment buildings transformed into condos, the number of rental units available in many markets has been significantly reduced. Demand for these limited number of units is still high, pushing rents up. While job growth in many markets is an additional factor in increasing rent, in some markets where the job outlook is poor such as Pittsburgh, Raleigh, and Cincinnati, rents are actually expected to remain steady or fall.

How expensive is the rental market in your area? Check out this table, also on MSN.com, to find out. Areas of Florida are leading the way in rent increases while, as expected, New York is far and away the leader in current rent rates.

Numbers for cities in this area taken from the MSN.com table:

City	Avg. Monthly Rent	Rank	Rent Growth	Rank
Washington, DC	$1,160	9	5.2%	14
Baltimore	$1,041	13	5.0%	16
Philadelphia	$990	16	3.0%	25
Norfolk	$809	22	5.6%	10
Richmond	$761	29	2.5%	28

Interestingly, Richmond is as expensive a place to rent as Atlanta and Denver and Norfolk is more expensive than those cities. In addition, Baltimore is more expensive than Chicago and Philadelphia. Draw your own conclusions because I have none.