Rental Listing Site Reports: Philly Had 2nd Largest Rent Increase In 2016
by Steve Tawa
PHILADELPHIA (CBS) -- An apartment rental listing website says Philadelphia renters are paying up for their digs.
Through 2016, its data shows the average monthly rent increase here was the second-highest in the nation.
In its annual rent report, Abodo, the online apartment marketplace, finds one-bedroom average monthly rents rose 4.2% in Philadelphia.
"It's sort of a renter by choice mindset, in demographic," said Abodo spokesman Sam Radbil.
Radbil says both Millennials and Baby Boomers are attracted to Philly's urban core to live, work, and socialize.
When rents rise, cost burdens follow. In the third quarter of last year, Abodo found that Philadelphia ranked 25th out of the 100 metro areas it tracked when it came to "cost-burdened" tenants - that is, those who spend more than 30% of their income on rent.
"The majority of renters are cost burdened because of luxury development, which are increasing the cost of all rental properties, or the demographic of renter by choice," said Radbil.
San Francisco had the highest rent in the country, averaging $3526 a month for a one-bedroom; New York City's was second at $2935.
Radbill says the average, over the course of 2016, here in Philadelphia was a relatively affordable $1,182.
"Philadelphia ranked 19th in the country. That's impressive, being one of the top five largest cities in the country. I think residents should be happy with that number, because of the great educational opportunities, job market, a growing economy, and alot of development," Radbil said.
Abodo expects rents in 2017 will continue to rise.