Rents Stabilized In November While Mid-Sized Markets Grow

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The Editors's picture
November rents report

Rents stabilized or cooled down in some of the nation’s hottest markets, including Portland, as rental seasonality put a damper on prices, according to RentCafe.

Meanwhile the long-term outlook for renting is still strong with 360,000 new units to come online in 2018.

"Housing demographics continue to favor renting with a continued robust delivery pipeline with 300,000 apartment units expected to come online for 2017 and 360,000 in 2018,” Doug Ressler, senior analyst at Yardi Matrix, said in a release.

Where will new apartments be in 2018?

“This amount of new supply exceeds previous national levels over the last twenty years,” he said. Where are the new apartments going to be?

  • 31% in the South Atlantic
  • 25% in the West
  • 19% in the Southwest
  • 14% in the Northeast
  • 12% in the Midwest

What November rents report shows

Rents are down for all sized apartments – at least month over month. Since October, studio apartments, one-bedrooms, two-bedrooms, and three-bedrooms have all dipped 0.1 percent. Seeing that two unit sizes saw rents either rise or stay steady back in October, this is good news for renters of all budgets.

 “This is the moment when the winter imbalance sets the bar in terms of rent changes for the year to come,” RentCafe said in the release. “Our November Rent Report shows that 83% of the biggest cities in the U.S. have seen rents grow year over year but prominent markets like Chicago, Houston or Miami are growing slower than the national average.

According to data from our sister division, Yardi Matrix, the national rent comes in at $1,358 in November, up 2.5% since last year.

Portland among cities showing rent drop

Rents decreasing

Out of the 250 cities we surveyed, only 9, including Portland, Oregon, posted rent drops. Lubbock exhibits a 7.7% y-o-y decrease, the most significant decline in the nation.

  • Odessa and Midland lead the nationwide growth with spectacular y-o-y rates, 33.2% and 25.6% respectively.
  • Five Californian cities managed to hijack the list of the Top 10 Fastest Growing Rents in November. Due to low supply and pressure coming from big urban hubs, Lancaster, Sacramento, and Modesto saw rents rise 8% or higher over the year.

What about the nation's priciest markets?

Rents in Manhattan remained steady from October to November but dipped over the year, 1.9%. Despite the month-over-month stagnation, San Francisco and Boston rents last month showed a y-o-y increase of 1.1% and 2% respectively.

Read the full report here.

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