Yardi Matrix's newest Matrix Monthly survey of 120 multifamily rental markets shows that the average U.S. apartment rent has hit an all-time high for the eighth consecutive month. The new average monthly rent in August was $1,220, or $3 greater than July’s average.
The deceleration Yardi anticipated in July is starting to show itself in the slower average-rent growth rate. August’s average rate is up by 5% year over year but down 50 basis points (bps) from July, 110 bps from April, and 170 bps from October’s peak.
Many of the tech-heavy metros that boasted high growth rates back in 2015 are now “coming back to Earth due to the combination of waning demand and affordability issues in the face of growing supply,” according to the report. San Francisco’s 2015 12% growth rate has now slowed to 1.6% year over year as of this month, and Denver’s 11% growth rate has fallen to 3.5%. Austin, Texas, and Boston have also dropped by over four percentage points.
Eighteen of Yardi Matrix’s top 30 metros have still seen year-over-year growth of 4% to 7%, however. Sacramento, Calif., leads the way, with an 11.9% increase, followed by Seattle, at 9.3%, and California’s Inland Empire, at 9.2%.
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