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Rental growth will cool off in major cities, Zillow says

Rental growth will slow considerably over the next 12 months, Zillow says.

Rents will rise by 1.1 percent nationally in 2016, and certain metros that saw rents rise steeply in 2015 will have a significant drop in the pace of growth, the real estate research firm said.

“The slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years,” said Zillow Chief Economist Svenja Gudell in a Zillow report. “However, the situation remains tough on the ground: rents are still rising, and renters are struggling to keep up.”

Zillow predicted that rents will rise the most in San Jose, Calif. (up 7.8 percent), Buffalo (7.4 percent), San Francisco (5.9 percent), Seattle (4.5 percent) and Denver (4 percent).


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