The national average effective rent continues to rise, but at a slower rate than in the past couple of years, according to data from Axiometrics.
In the third quarter of 2016, rents increased 3 percent year over year, down from the 5.2 percent growth rate posted a year ago.
This decline is being driven by negative or below-average rent growth in some of the countrys highest-priced major markets, including San Jose, California (down 0.8 percent); San Francisco (down 0.5 percent); New York City (down 0.2 percent); and Oakland, California (up just 1.8 percent). High supply in these markets is modulating rents, though absorption has not been a problem.
Many secondary markets are still going strong, however. In the third quarter, rent growth was above the national average in cities such as Sacramento, California (11.9 percent); Riverside, California (7.9 percent); and Salt Lake City (6.7 percent).