Rent growth rates slow as affordability becomes a factor in many metros
SANTA BARBARA, Calif., May 03, 2017 – Multifamily rents in the U.S. rose slightly in April, although the rate of growth fell below the long-term average, according to data compiled in the most recent survey of 121 markets by Yardi® Matrix.
Average U.S. rents rose $3 during the month to $1,314, an increase of 2% but well below the 5.5% growth rate of a year ago and the lowest year-over-year percentage increase since April 2011.
The figures are expected, the report says, “given the rapid increase in supply and the inevitable return to growth that is more in line with income gains.”
According to the report, “Rents have (in most metros and most segments) far exceeded the rate of income growth in recent years, when the number of renters increased rapidly while supply nosedived in the wake of the last recession. Now rents are peaking and have become difficult to afford for the average resident in many metros, while supply is at cyclical peaks.”
Three California real estate markets led year-over-year rent growth in April: Sacramento, the Inland Empire and Los Angeles. Others in the top five were Minnesota’s Twin Cities and Seattle.
View the full April report for additional detail from 121 major real estate markets.
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