Rental Housing Market Statistics in Central Pennsylvania
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The rental housing market has been gaining steam over the last 7-8 years. The market has seen increases in the number of renter occupied housing units, median monthly rent, and the overall amount spent by Central Pennsylvanians on contract rent during this time period. Continual growth is expected to occur through the year 2020.
rental housing units
In 2015, Central Pennsylvania (Adams, Berks, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, Perry, and York Counties) had approximately 290,000 total rental housing units with a vacancy rate of about 6.9 percent. The region has witnessed an increase in the number of occupied housing units each year since 2008. In this time frame, the number of renter occupied housing units has increased on average approximately 3 percent per year. The largest increase in these units occurred in 2012 when the total number of renter occupied units jumped about 8 percent which represents an additional 18,900 units going from 242,287 total in 2011 to 261,132 in 2012.
According to the data, it is likely that there will continue to be additional increases in the number of renter occupied housing units over the next 4 to 5 years. It is estimated that by the year 2020, there will be approximately 282,000 renter occupied units in Central Pennsylvania (an additional 9,300 units).
The graph above displays the number of rental housing units per year between 2000 and 2015 and predictions for 2018-2020 (yellow bars). Overall, the number of rental housing units has been increasing on average about 3% each year since 2008. The largest increase in these units occurred between 2011 and 2012, when the total number of units being occupied by renters rose about 8 percent which represents an addition of about 18,900 units in that time frame.
The cost to rent in central pennsylvania
In 2015, Central Pennsylvanians spent roughly $3.2 billion in contract rent for housing making the average monthly payment just under $960. The median monthly rent for housing units in the region during 2015 was $651.44. This was a slight increase over the median rent in 2014 of about 0.39%. Since 2012, there has only been modest growth in median monthly housing rent and this is a trend that is anticipated to continue occurring through 2018 with little-to-no growth in 2019 and 2020.
When looking at the incremental breakdown of monthly housing rental payments across the region, we learn that the highest percentage of renters are paying between $800 and $899 per month. About 11 percent of the total renters in the marketplace fall into this category. Overall about 21.2% of renters pay up to $500 in monthly housing rental payments, 41.3% pay between $500 and $749 per month, and 37.5% pay more than $750 per month.
The graph above displays the median rent being paid per month by Central Pennsylvanians between 2000-2015 with estimates for 2018-2020 (yellow bars). In 2015, the median rent was about $650 per month which was only a very modest increase over 2012, 2013, and 2014. Very little change is anticipated for the median rent between 2015 and 2020 according to the information.
The graph above displays an incremental breakdown of monthly housing rental payments in the Central Pennsylvania region by the number of households paying rent in each of the respective categories. About 11 percent of households pay between $800 to $899 per month in rental payments. The largest grouping of households (about 41.3%) pay between $500 to $749 per month (green bars).