Rent Growth Continues at Slower Pace

| Updated

2 minute read

Nearly all of the 100 largest U.S. cities have seen month-to-month rent growth.

Rent growth continues throughout the U.S. Despite a winter slowdown, the May Apartment List National Rent Report shows a 0.9% increase in April to the national index. Year-over-year rent growth is at 16.3%, but rents in the first third of 2022 are only up 2.5%. In 2021, rent growth was at 3.9% in the first four months.

Rent growth has slowed dramatically since October 2021—month-over-month (MoM) change has not surpassed 1% since September 2021. The current index aligns more with what was seen prior to the start of the pandemic, when MoM rent growth averaged 0.8% in April (2017-2019).

Rents are also up in 93 of the 100 largest cities MoM. Much of this has been seen in the Sun Belt markets. Over the past six months, Miami (7%), New Orleans (6%) and Orlando, Fla. (6%) have seen the highest growth rates. Over the past 12 months, Miami at 30% leads all metros, with fellow Florida markets Orlando (28%) and Tampa (28%) close behind. Tampa at 39% rent growth leads the way since March 2020. Miami (34%) and Orlando (29%) were also in the top 10.

On the opposite side, Pittsburgh; Grand Rapids, Mich.; Virginia Beach, Va.; and Jacksonville, Fla.; have seen a 1% decline in rents over the past six months. Minneapolis (7%), Pittsburgh (8%), St. Louis (9%) and Kansas City (9%) showed the slowest rent growth over the past 12 months. San Francisco (-3%) and neighboring San Jose (-1%) were the only two metros with rent declines since March 2020.