Apartment Rents Increase as Young Workers Head Back to Cities

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Apartment Rents Increase as Young Workers Head Back to Cities
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Apartment rents are rising fast, boosted by young professionals returning to cities and an expensive housing market

that keeps many of them renting.

Stock prices of publicly traded apartment companies have jumped in stride. The FTSE Nareit Equity Apartments index, which tracks these landlords, is up 42% since January, trouncing the S&P 500’s 17% gain during the same period. Median rent has risen more than 10% over the past year $1,244, according to homesearch website Apartment List. That figure is also 9.4% above where rents stood in March 2020, right before Covid-19 lockdowns began.forcing many would-be home buyers

out of the for-sale market, and they have had little choice but to pay up for rent. As of June, median existing-home sales prices are up 23.4% from a year earlier to $363,300—a record high, according to the National Association of Realtors. Job losses at the beginning of the pandemic initially hurt rent collection. Occupancy rates dropped to new lows for some landlords. Major markets like New York and San Francisco had double-digit declines in asking rent, sending

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