Rent prices across the nation are continuing at an unprecedented pace, according to a new industry survey.
The Yardi Matrix company, based in Santa Barbara, California, is reporting that rents in September were up by a significant 11.4% over September of last year.
The current average now stands at $1,558, with occupancy rates, at 95.9%, up ten points over last fall.
Looking at the trends in 140 markets nationally, the Yardi Matrix survey shows that what is called “lifestyle rents” are up by 13.4%, with the “renter-by-necessity” category up 9.5%.
Lifestyle renting applies to those who have voluntarily opted to go the apartment route instead of purchasing a home, a growing category that includes everyone from retiring Baby Boomers to members of the Millennial generation.
The steady pace of rental increases, says the Multi Housing News, is not without concerns in the industry. So far, notes the publication, renters have been generally able to sustain higher rents, particularly in the upscale segment.
“But affordability concerns are likely to resurface if rents continue to increase,” it adds.
Regionally, rent increases have been most notable across the Sunbelt, fueled in part by job growth and domestic migration, with Phoenix seeing the biggest jump this year at 22.8%.
Tampa, Las Vegas, and Miami all came in a close second place with 22.6% increases.
Surprisingly, larger cities such as New York, Los Angeles, and Chicago saw smaller increases over last year, primarily because rental prices in those cities are already high, with the Big Apple fetching rents of anywhere from $3,000 to $4,000 per month.
Despite the ongoing year-to-year rent growth, the Yardi Matrix survey notes that a process of “deceleration” may be at work: September’s growth over August was the smallest monthly growth since the beginning of this year.
By Garry Boulard
