Rent Growth in April Strongest in Smaller Markets
Digested from Rent Café Blog
The story in rent growth across the country continues to be the strong performance of smaller markets. Nationally, year-over-year rent growth in April increased by 2 percent, with the national average rent currently at $1,314, according to data from Yardi Matrix.
Overall, 81 percent of the 250 cities Yardi Matrix tracks experienced rent growth from April 2016 to April 2017. Stockton, California, took the top spot with 11.2 percent rent growth for the year, followed by Lancaster, California (10.9 percent); Colorado Springs (10.0 percent); Tacoma, Washington (9.5 percent); and Santa Rosa, California (9.4 percent). Eleven of the top 20 cities for year-over-year rent growth in April were in California.
While San Francisco still has the second highest rent prices—New York City continues to be No. 1—the city had negative rent growth for the third consecutive month, with a 3.6 percent year-over-year decline in April. Other expensive rent markets, including Manhattan; Cambridge, Massachusetts; and Oakland and Sunnyvale, California, also saw rents decrease in April.
The top rent growth cities are no longer the cities with highest average rents. The two cities with the highest rents in the top 10 cities for year-over-year rent growth are Santa Rosa, with an average rent of $1,775, and Sacramento, California (No. 8 on the list with 9.2 percent rent growth), with an average rent of $1,212. For April, Santa Rosa comes in No. 36 on the list cities with the most expensive rent, and Sacramento is in the 107th spot.