Rent Growth Continues in October at Slower Pace
Rent growth across the U.S. continues to climb but at a slower pace than seen earlier this year.
Rent growth remains strong across the U.S. despite a slowdown in the fall. According to the latest National Rent Report from Apartment List, rents backed off a bit to their smallest month-over-month growth rate since February. The national index increased 0.8% from September to October to put the national median rent growth at 16.4% since January. Between 2017-19, rent growth averaged 3.2% from January to October.
The national median rent increased to $1,312, $107 higher than Apartment List’s forecast had projected rent growth continued its pre-pandemic path and in line with 2018-19 growth rates.
While the index continued its climb, 22 of the country’s 100 largest cities saw rents decline from month to month. This includes Boise, Idaho, which for much of the past several years, even before the COVID-19 pandemic, has seen exponential rent growth. However, Boise saw a 3.1% declined from September to October.
Cities that have rebounded since March 2020 have seen a leveling off—this includes major coastal markets such as California’s Bay, Seattle, Washington, D.C., and New York. San Francisco saw a 1% decline in rent prices from September to October and is down 12% since March 2020.
Meanwhile, Boise fell from the top spot as the highest growth market with it’s monthly decline and now sits in the sixth spot of the largest rent gainers since March 2020. Tampa, Fla., overtook the top spot and is ahead 36% compared to March 2020. Greater Phoenix markets—Gilbert, Glendale, Mesa and Chandler—sit between Tampa and Boise. The Las Vegas metro follows with Henderson, North Las Vegas and Las Vegas ahead of Tampa neighbor St. Petersburg. All top 10 cities have at least a 32% rent growth since March 2020.