There is a growing divide in the rental market, according to Zillow’s latest report.
While analyzing the the median rents in 15 Metropolitan areas, Zillow found that most new apartment construction is high-end as opposed to low-end.
Additionally, the median rent for the least expensive rental units is outpacing the growth of the median rent overall. Zillow further reported that in the past year alone, 11 of the 16 housing markets saw double-digit rent appreciation among low-end apartments.
In Washington, D.C., the median price of the least expensive third of rental units grew 7.7 percent year over year to a median $1,551 monthly rent. Meanwhile, the median price of the most expensive third of rental units grew 25.7 percent year over year to a median $3,229 monthly rent.
When it comes to the new apartment construction in Washington, D.C. since 2014, 13.3 percent was at the affordable end, while 55.7 percent was at the luxury end.
In comparison to Washington, D.C., 93.1 percent of rentals in Tampa, Florida built after 2014 were high-end. Out of the 15 Metro areas analyzed, the highest percentage of low-end rentals constructed since 2014 was found in St. Louis, Minnesota with a growth of 25.3 percent.
For all of the data, see the graph below or check out Zillow’s report here.