In August, the national annual effective rent growth rate dropped below 3 percent for the first time in two and a half years.
According to Axiometrics, August rent growth of 2.9 percent was the lowest since the 2.8 percent of February 2014, but remained above the long-term (1990-2015) average of 2.2 percent. The rate represented a 29-basis-point (bps) decrease from Julys 3.2 percent and a 224-bps decline from the 5.1 percent of August 2015.
Effective rent growth has decreased from July to August in five of the past six years, the exception being 2014 when market performance was surging, writes Dave Sorter of Axiometrics.
A drop in rent growth was seen in metro areas across the nation. Seattle, New York, Chicago and Nashville, Tennessee, were among dozens of cities that saw decreased annual rent growth month over month and year over year.
With school back in session, the national occupancy rate hit 95.2 percent, up from July 2016, but slightly lower when compared to August 2015.