U.S. rent growth slows: VIDEO

TRD New York /
Sep.September 05, 2012 04:00 PM

This year’s red-hot rent spikes have cooled down a bit. Citing Trulia.com data, CNBC reported that U.S. rents climbed 4.7 percent year-over-year in August, far less than the 5.8 percent annual increases recorded in May and the smallest such jump since March.

Some markets continue to see rapidly rising rents. Houston, Seattle and San Francisco, to name a few, saw rents climb 10 percent year-over-year in August. The New York City metro area saw a 6.6 percent year-over-year increase, according to Trulia. Unlike other large American metro areas, New York’s August increase was greater than it was in May, 5.6 percent.

“New construction that started last year is finally coming onto the market, giving renters more choices and some relief from rising rents,” Jed Kolko, chief economist at Trulia, told CNBC.

But an improving housing market can exist with a spiking rental market peacefully for a time, CNBC said, because much of the growth in housing prices has been caused by investors trolling the distressed market, buying in bulk, and pushing down supply.

Meanwhile, in New York, building permit data shows rent increases are likely to continue to grow because of a dearth of new construction. [CNBC]

Related Articles

(Credit: iStock)

Manhattan rents hit highest level in more than a decade

(Credit: iStock)

The city’s rental growth is slowing

The massive meeting held in a suburban casino outside of Utica came at a time when the real estate industry is asking itself some tough questions. (Credit: iStock)

Meet the 400 landlords that are taking rent laws into their own hands

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws

Olivia Gamber, the farmer-in-residence at Staten Island Urby’s Rabbit Garden

The Staten Island rental that’s luring in renters with tomatoes and hot peppers

Portland, Maine (Credit: iStock)

The states with the biggest share of vacation rentals aren’t where you’d think

Landlords are exploring “creative” ways of mitigating the impacts of the new rent law. (Credit: iStock)

How NYC landlords are trying to get around the new rent law

(Credit: iStock)

Manhattan homebuyers continue “camping out” in the rental market: Elliman