Chattanooga #3 for Highest Increase in Apartment Rental Rates
CHATTANOOGA, Tenn (WDEF) – According to a recent study by Magnify money, Chattanooga ranks third out of 100 largest US metros for the highest increase in rental rates.
This big increase in price is mostly for two bedroom apartments.
Officials say the average rental price increased by 15.7% this year as compared to last.
“There are a number of factors. Obviously the very basic thing is that over this year there have been a lot of people moving to Chattanooga. There’s a lot of job growth. People are earning more money, needing places to live and it’s hard for builders to react to rapid growth,” says Derek Miller, Analyst with LendingTree.
Chattanooga is ranked third behind Newark, New Jersey and Detroit Michigan.
Officials say with these price increases continuing even through a pandemic, it could push residents to move outside the city limits.
“For people who may be getting some better jobs they can maybe afford rising rents. But for people who have less job security or who worried about the pandemic could lower their housing cost by moving sort of away from the jobs where people with more money can afford to live. But then that can increase your commute and transportation costs,” says Miller.
Research analysts say Chattanoogans could see the rising cost of renting an apartment level out-when there becomes a healthy ratio of apartments to residents.
And with so much job growth in Chattanooga, we will have to wait and see when, or if, that occurs.