For months, rent growth has continued upward, but the latest data shows asking rents are decreasing.
Year-over-year (YoY) rent growth continues, yet a slowdown has happened after more than a year and a half of gains. A new report for Apartments.com shows rents declined across the U.S. from July to August.
“After a 20-month run of positive monthly growth dating back to December 2020, the market finally witnessed negative asking rent growth on a monthly sequential basis from July to August, with rents down 0.1% in July,” said Jay Lybik, National Director of Multifamily Analytics with Apartments.com parent CoStar Group, in a release. “We’re seeing a complete reversal of market conditions in just 12 months, going from demand significantly outstripping available units to now new deliveries outpacing lackluster demand.”
As of the August report, Florida leads the way in rent growth. Orlando, Miami and Fort Lauderdale each saw at least an 11% climb YoY. Minneapolis (2.8%) and San Francisco (3.9%) were on the opposite end.
Meanwhile, Orange County, Calif., secured the highest month-to-month growth at 1%. Nashville, Tenn., and Austin, Texas, saw rents decline about 1% month to month. Much of the rent declines were seen in Sun Belt markets after recording large rent increases throughout 2021. Joining Nashville and Austin in this category are several Florida markets, Las Vegas and Phoenix among others.