Renters in search of cost-effective housing should consider taking up residence in Idaho’s capital, according to new data published by the Waller, Weeks and Johnson Rental Index within Florida Atlantic University’s Real Estate Initiative.
The new data study analyzed the average rent in the 100 most populated U.S. metropolitan areas and compared to where rents should be based on historical, statistically estimated rental pricing trends. At least 21 of the 100 area are renting at a discount relative to their long-term rental pricing trend.
Boise, Idaho, was found to offer prospective renters the largest discount in the country: the typical unit is renting at a 5.45% discount. The other top five markets in the new study were Austin at 3.27% discount, Phoenix at a 3.15% discount, Las Vegas at a 2.88% discount, and Spokane, Washington, at a 2.62% discount.
“These were some of the hottest cities in the country seeing rapid population growth over the past few years. Developers responded to that demand by building more, and they have slowly overdeveloped the number of multifamily units in the area,” said Dr. Ken H. Johnson, real estate economist in Florida Atlantic University’s College of Business. “Due to rents trading at a discount, it’s likely that renting is the better option than buying in these areas.”
However, there were more than a few markets where renters are paying steep premiums. The top five at this end of the spectrum are Springfield, Massachusetts, where units are renting for a 7.45% premium, Knoxville, Tennessee, at a 7.18% premium, Madison, Wisconsin, at a 6.90% premium, New Haven, Connecticut, at a 6.84% premium, and Syracuse, New York, at a 6.71% premium.
