Boston Area Renters Keep Paying More

If Boston renters needed encouragement to make buying a home their New Year’s resolution, landlord’s happily provided the motivation. Boston area rents increased 7 percent to an average $2,245 in November compared to November 2014, the Boston Business Journal reported December 31, 2015.

Zillow, a real estate data company, revealed the rental information in a new report on December 30, 2015.

Boston is now home to the nation’s sixth-highest rents. Boston renters paid in total $13.4 billion in rent in 2015, Zillow reported.

American’s paid a total of $535 billion in rent in 2015. In 2014, renters spent $516 billion on rent. Renters nationwide paid almost $20 billion more than in 2014, due to 1.8 million new renter households and increased rents.

Average rents nationally rose nearly 4 percent in November to $1,382. The most significant increase took place in San Jose, CA, with its average rent at $3,416. San Francisco’s average rent was $3,325 in November.

“American’s 2015 rental expenditures were roughly comparable to the total budget of the Department of Defense ($575 billion) and almost five times what Americans spent on dental care in 2014,” according to Zillow. “Using his entire net worth – estimated by the 2015 Forbes 400 at $47 billion – Amazon.com CEO Jeff Bezos could have paid roughly one month’s rent for every American renter in 2015.”

On the other hand, it’s good news if you’re a Greater Boston homeowner. Homes in the Boston area gained $33 billion in total value in 2015, a 5.5 percent increase. Boston home values increased 5.4 percent in November.