Dive Brief:

• By the end of the year, the average rent on an apartment in the U.S. will jump by 3.3%, according to Reis, a commercial real estate market information site.

• Rents surged by 3.6% last year, and have risen 14% since 2010—4% faster than inflation, and more than double the increase in home prices over the same period. The average monthly fee for an apartment lease is $1,124, according to Reis.

• Denver, Oakland, CA, and San Francisco saw the highest rent increases between January 2014 and January 2015, the report said.

Dive Insight:

Rising rents are a double-edged sword for homebuilders. While increasing home prices keep many would-be first-time buyers in the rental market, skyrocketing rents make buying the much better deal and move some to trade their apartment leases for mortgage payments.

Still, the higher rents climb, the harder it becomes for tenants to save money for the down payment on a home.