The Ups and Downs of the U.S. Apartment Market
Digested from The Topsy-Turvy Apartment Markets in Axiometrics (6/14/2016) by Sorter, Dave
Local apartment markets saw performance shake-ups in May. A new Axiometrics study shows that secondary markets are showing signs of heating up, while top metro areas are seeing a decline in growth.
From April 2015 to May 2016, Anaheim, California, and St. Louis have topped the charts for largest annual rent growth increases, with Anaheim moving from 4 to 5.5 percent, and St. Louis from 2.4 to 3.6 percent.
On the other end, popular cities like Sacramento, California, and Portland, Oregon, which once reached double-digit rent growth, are among the top three metro areas that have experienced the largest decreases in annual rent growth in the past year. For example, Sacramento fell from 11.7 to 9.7 percent.
This decrease in the rent-growth rate falls in line with Axiometrics latest forecast, which predicts more moderation this year, Jay Denton, Axiometrics senior vice president of analytics, said in a news release. Its important to note that rent growth is still above the long-term average, and that the decrease from the heights of the past two years is all a part of the cycle.