There is good news for many renters in the Washington, D.C. area. The rent appreciation in the city is expected to slow down this year.
Last year, Washington, D.C. dropped to fifth place in the most expensive rental fees in the U.S., reported Curbed DC. In 2014, the country's capital was the fourth in the list. The report reiterated that D.C.'s rent increase will not halt entirely but it will significantly slow down.
Zillow, an online real estate company, has predicted that Washington D.C.'s rental fee will increase by 0.5 percent only. So for a $1,000 monthly rent there will only be an additional of $5 to the fee.
According to Dr. Svenja Gudell, the chief economist of Zillow, this slowing down of rent appreciation is somewhat a good thing because they provide respite to renters. However, if the people spend more than half of their salaries in paying their rent, then this semi-stagnant rent inflation is useless at all angles.
Meanwhile, the rest of the country will also experience this cooling down of rent appreciation this year, Housing Wire noted. Zillow mentioned that the annual rate across the country will have an average of 1.1 percent by December this year. This means that the rent index will be $1,396 from $1,381 last December 2015.
The real estate site, however, also confirmed that the price of rent, especially in the major U.S. cities and West Coast, will remain high and unaffordable for a lot of residents. In Los Angeles and San Francisco, renters will still be using 40 percent of their salary on paying rental fees.
Gudell revealed that "Hot markets are still going to be hot in 2016, but rents won't rise as quickly as they have been." Many residents who rent will still have to deal with the rent appreciation and would find it hard to keep up with fees, the Zillow Chief Economist said.
