Rental prices are inching up — but there are still plenty of bargains

Rents rose 2.9 percent in the third quarter

National /
Sep.September 27, 2018 10:30 AM

(Credit: iStock)

Yes, apartment rents are on the rise. But it’s becoming a renter’s market across many U.S. metro areas, where landlords are expecting more supply.

Rents rose 2.9 percent in the third quarter, versus a year earlier, the Wall Sreet Journal reported. That’s also an increase from 2.5 percent in the second quarter. The boost comes from factors including a weaker sales market — tight supply nationally has driven up prices — and a strong economy that’s spurred more demand.

“There definitely doesn’t seem to be the pressure to buy that was there a little bit earlier,” Greg Willett, chief economist at RealPage, told the Journal.

The share of occupied apartments during the third quarter climbed to 95.8 percent from 95.4 percent in the second quarter, the report said.

Sun Belt cities have seen the most growth, with Las Vegas and Orlando seeing rents push up by 6.6 percent and 6.5 percent, respectively. Tampa also saw a 4.9 percent uptick.

Meanwhile, the markets that were once most desired by developers — New York, Seattle and Portland — are now feeling the impact of oversupply. Those three markets each saw 1.7 percent in rent growth. Chicago saw 1.3 percent.

The rental market in Manhattan specifically remains sluggish. The median net effective rent in August was down 2 percent year-over-year. Prices in the luxury segment dipped 3.8 percent. [WSJ] — Meenal Vamburkar


Related Articles

arrow_forward_ios
Sculpture artist Robert Hooke’s Sag Harbor home lists for $10M
Sculpture artist Robert Hooke’s Sag Harbor home lists for $10M
Sculpture artist Robert Hooke’s Sag Harbor home lists for $10M
 An industry report says that mortgage lenders and investors are ill-prepared for the growing challenge of climate risk. (iStock)
Mortgage market stakeholders are unprepared for growing climate change threats
Mortgage market stakeholders are unprepared for growing climate change threats
Macklowe Properties CEO Harry Macklowe, CIM Group Co-Founder Richard Ressler and 432 Park Avenue (Getty, CIM)
432 Park Avenue residents sue developers for $250M
432 Park Avenue residents sue developers for $250M
Comptroller Scott Stringer (Getty)
City landlords’ tax delinquencies approach Great Recession levels
City landlords’ tax delinquencies approach Great Recession levels
US household real estate values jump by record $1.2T
US household real estate values jump by record $1.2T
US household real estate values jump by record $1.2T
David Bitton, CMO and co-founder of DoorLoop and Ori Tamuz, CEO and co-founder of DoorLoop (Bitton, DoorLoop, Getty)
Startup DoorLoop to take on goliaths in rental management software
Startup DoorLoop to take on goliaths in rental management software
Richard Grossman
Brown Harris Stevens’ NYC president Richard Grossman steps down
Brown Harris Stevens’ NYC president Richard Grossman steps down
The six bedroom Sagaponack house (Out East)
Sagaponack mansion lists for $32M in East End’s supply-constrained market
Sagaponack mansion lists for $32M in East End’s supply-constrained market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...