Though rents are still rising across the country, the growth is slowing. Average monthly rents reached $1,350 nationwide in July, an uptick of only $1 since June and an increase of 2.6 percent from a year ago, according to data by Yardi Matrix.
Supply is loosening up as a larger influx of new apartment buildings hits the market, helping to put a tighter lid on escalating rental costs. The RentCafé Blog reports that the largest jump in apartment construction in the last two decades is expected this year. Nearly 347,000 new units will enter the market—a 21 percent increase over last year, according to the blog.
However, 64 percent of the new supply will be limited to the nation’s 20 biggest metro areas. Therefore, outer suburbs and rural areas will continue to see low supplies and higher rents, RentCafé reports. “The huge number of apartments entering the market benefits all renters, but especially those in the country’s most expensive areas,” says Doug Ressler, senior analyst for Yardi Matrix. “More apartments mean more choices—and ultimately, more bargaining leverage for the renter.”
New York and several cities in Texas have posted some of the largest drops in rents across the country. The U.S. cities where rents have fallen the most year over year are:
- Lubbock, Texas: -3.1% (change year-over-year); $896 (average rent)
- Manhattan, N.Y.: -3.1%; $4,054
- College Station, Texas: -2.2%; $1,179
- Pearland, Texas: -2%; $1,259
- Tulsa, Okla.: -1.7%; $674
- Oklahoma City: -1.6%; $723
- Brooklyn, N.Y.: -1.6%; $2,712
- Round Rock, Texas: -1.5%; $1,107
- San Francisco: -1.3%; $3,439
- Broken Arrow, Okla.: -1.2%; $801
Meanwhile, some metros are still seeing rents surge from high demand. The cities with the fastest growing rents in July are:
- Midland, Texas: 18.1% (change year-over-year); $1,180 (average rent)
- Odessa, Texas: 13.4%; $1,013
- Buffalo, N.Y.: 12.7%; $977
- Reno, Nev.: 12.4%; $1,098
- Lancaster, Calif.: 11.1%; $1,158
- Stockton, Calif.: 10.4%; $1,051
- Colorado Springs, Colo.: 9.4%; $1,070
- Tacoma, Wash.: 9.2%; $1,156
- Kent, Wash.: 9.1%; $1,409
- Sacramento, Calif.: 9%; $1,257
Source: “Despite National Slowdown, Rents in Midland, Buffalo Reach New Highs in July,” RentCafé Blog (Aug. 1, 2017)
