Much like last year, 2017 kicked off with a growth spurt in the rental market. Apartment rents rose by $5 in January, bringing the average national rent in the U.S. to $1,315. This represents the first overall monthly increase in five months, a sign that renters are on the move again, bolstering demand.
Here are some other key takeaways:
- Sacramento takes the lead in national rent increases with a staggering 12.5% growth y-o-y.
- San Francisco is finally seeing some relief; rents dropped nearly a full percent since January 2016. This is likely due to an influx of new units in 2016: by the end of the year, the city had seen its biggest glut of inventory in the last decade, adding almost 10,000 new apartment units — a 126% jump from 2015’s additions. Now, rents are 0.9% lower than they were just one year ago (though they’re still a cringe-worthy $3,378 a month!)
- On a more positive note, 14 of the nation’s top 20 markets for rent growth saw rents lower than the national average in January, with a large chunk of those located in either the South or the West, Las Vegas included. Rents in the City of Lights have indeed grown a robust 6.0% over the last year, but they still remain among the 20 Lowest Rents in the US — apartments now go for $904.
- Las Vegas has seen a lot of construction activity last year with no less than 1,400 units added to the local rental inventory; plus, the 3,400 units that are currently under construction will help reduce the pressure on rents in the future.
- Please click here for more information on national apartment trends
