The U.S. multifamily market reportedly took a beating in the first three months of 2017, with rents falling in a slew of major metropolitan areas nationwide amid a jump in supply.
The Wall Street Journal reported that rents either stagnated or fell in 28 of 79 metros studied in the first quarter by real estate research firm Reis, most notably in the nation’s priciest rental markets: New York City and San Francisco, which saw dips of 0.6 percent and 1.3 percent, respectively.
Overall rent growth for the country was also declining, according to the report. Average rents across the U.S. rose 3.1 percent year-over-year, falling from the 5 percent jump between 2016 and 2015.
The publication reported that part of the blame belonged to a surge in supply: developers built 100,000 more apartments than what the market absorbed in the first quarter, according to data from Axiometrics. That drove occupancy down from 95.1 percent to 94.5 percent.
While U.S. landlords’ pocketbooks might be hurting, renters in many major cities are likely welcoming the price relief. A recent report from listing site Zillow stated Miamians spend up to 58 percent of their income paying for rent every year. [Wall Street Journal] — Sean Stewart-Muniz