According to the latest Yardi Matrix average U.S. rents increased by $3 in August to a new high of $1220 – representing the 8th consecutive monthly record. Rents were up 5% year-over-year (down 50 basis points from July) however there are some signs rent growth is cooling. Yardi says that fundamentals in most of the country remain strong and although occupancy rates have declined slightly, they remain extremely high with robust apartment demand across the board.
“The deceleration in rents is in line with expectations. We forecast 4.5% growth for 2016, so if anything, year-to date increases have surprised on the upside. The slowdown is less cause for concern than the natural byproduct of limits when income growth is between 2 and 3%. In that environment, rent growth can only return to more moderate levels…Rent growth generally remains solid in much of the country.”