Whether you’ve been shopping for groceries or apartments, you’ve probably noticed some rising prices. According to a recent report from the University of Alabama, rental rates are rising significantly in the SEC’s college towns—including Tuscaloosa and Auburn. Here are the numbers.
Rising rent in Tuscaloosa
According to a new report from three researchers at universities in Florida and Alabama, Tuscaloosa’s rental rates have seen a 7.8% increase over the past year. The average rental rate is $1,472 according to the Waller, Weeks and Johnson Rental Index.
While this price increase may seem staggering, Tuscaloosa’s rental rates are still well below the national average of $2,054 and also below the SEC cities’ average of $1,541.
“Not only does the SEC offer great academics and athletic programs, but also provides an affordable rental market for students.”Dr. Bennie Waller, William Cary Hulsey Faculty Fellow, UA Culverhouse College of Business + research associate in the Alabama Center for Real Estate (UA News Center)
Rising rent in Auburn
Rent in Auburn has risen even more than in Tuscaloosa. Their average rent is $1,586, a 9.68% 12-month increase according to the University of Alabama’s report.
However, neither of these rental rate increases come close to the biggest increase on the list in Oxford, Mississippi. Rental rates rose 20.94% over the past 12 months, well above the SEC average of 8.22%.
“Rents continue to increase at a pretty hefty rate…The growth of rates may be slowing, but they are still increasing. Depending on what the Federal Reserve is going to do at the next meeting, if interest rates are going to go up again, which I do think they will, then I think mortgage rates are going to go up again. That’s just going to continue to exacerbate the rental markets.”Dr. Bennie Waller, William Cary Hulsey Faculty Fellow, UA Culverhouse College of Business + research associate in the Alabama Center for Real Estate (UA News Center)
Want updates like this delivered straight to your inbox? Sign up for our newsletter today.