Why don’t rent prices boom along with property prices?

[Bryce Nerland]

I bought my first property in 2013. I paid $65k for a townhouse and rented it for $780 at the time. This was an average deal bought off of the MLS in a C neighborhood.

Today, the price to purchase the same property would be $85-90k. The rent on the other hand only increased from $780 to $840. I am confident the townhouse has rented at market value both then and now.

In the 6 years that I have owned it, the property value saw a 35%-40% increase while the rent only went up by 7.5%. My other properties have followed a similar trajectory.

I am wondering why rent rates do not seem to follow the pace of property value increases. Have increased rent rates historically trailed property value increases? I struggle to understand the dynamics of the the real estate market.