Rent growth is moderating in many U.S. cities, according to the latest rental market report from Axiometrics, a leading national rental analytics firm.
Key highlights of the report include a 3.7% effective rent increase for second quarter this year, compared to 5.1% growth last year at this time, and 4.1% reported for first quarter of this year.
The average national rent was $1,277 for the second quarter of 2016, a $46 increase from the average of $1,231 in the second quarter of 2015.
Jay Denton, Axiometrics’ Senior Vice President of Analytics explains that, while new graduates are heading into the workforce and families are looking to move over the summer, annual rent growth is moderating overall due to supply and declining jobs numbers.
With respect to occupancy rates, the national average was 95.2% in the second quarter, the first time the number has been above 95% since the second quarter of 2015.
Axiometrics’ 50 top markets continued to gain in rent growth, except for Houston, where rents suffered from energy-related job losses and high supply from new construction. Sacramento was the only metro area to report double-digit rent growth in the second quarter.
In fact, Sacramento saw the highest annual effective rent growth — 10.4% — among Axiometrics’ top 50 markets for the second straight quarter, beating No. 2 Seattle (7.9%). Phoenix, Portland and Riverside showed strong growth. Six metro areas in California were in Axiometrics’ top 25, as were four Florida metros, and three in Texas.
The top ten markets for annual effective rent growth include the areas around Sacramento; Seattle; Phoenix; Portland, Oregon; Riverside, California; Ft. Worth; Tampa; Nashville; Orlando; and Salt Lake City.
The top 10 markets for highest occupancy include:
Nassau County-Suffolk County, NY
New York-Jersey City-White Plains, NJ-NY
Minneapolis-St. Paul-Bloomington, MN-WI
Warren-Troy-Farmington Hills, MI
Salt Lake City, UT
San Diego-Carlsbad, CA
To see more, including the top 25 markets, please visit www.axiometrics.com.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.