U.S. rent growth slows: VIDEO

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]