October 15, 2019
Written by Irina Lupa via RentCafe.com
Key takeaways:
- The national average rent went up by 3.2% in the past year but dipped by 0.1% month-over-month, reaching $1,471 in September according to data from Yardi Matrix.
- Apartment rates in a majority of small and large cities registered either minor decreases or stagnated.
- In more than half of the nation’s largest renter hubs rent prices waned since August.
As part of a seasonal respite, the national average rent decreased for the first time since February 2017, dipping by –0.1% ($1) from last month to $1,471. The decrease might seem insignificant, but coupled with the slowest year-over-year hike in the past 13 months, 3.2% ($45), it points to a slight wind-down in rent prices in the context of a more volatile financial climate, according to Yardi Matrix.
Apartment prices in more than half of the largest renter hubs dipped since August
65% of mega-hubs have rents below the national average, while 35% have rates above. At the same time, 55% of the largest renter hotspots saw apartment rents decrease since August, by as little as -0.1% in Tampa ($1,320), Charlotte ($1,243) and Jacksonville ($1,091), and as much as +0.5% in Houston ($1,101).
Indianapolis apartments cost $878 on average in September (after a 0.2% uptick from the prior month), the most affordable for renters living in the nation’s largest renting cities. Columbus is the second most affordable, with a $947 monthly rate (up by 0.3% since August). San Antonio ($1,045) offers the third most affordable apartments, where prices have also seen a slim monthly dip of -0.2%. Meanwhile, Manhattan continues its reign as the priciest renter hub in the nation, with its average rent reaching $4,336 in September (a hefty 1.5% increase compared to the prior month). Los Angeles apartments go for $2,556 per month (up a solid 1.2% since August), while Washington, D.C. apartments ($2,232) trail behind, after a 0.2% uptick since August.
2-bedroom apartments are by far the most popular among renters
Traffic data from RENTCafé.com shows 2-bedroom apartments are the most popular among renters searching for new homes, making up 42% of searches on the website. The second most popular units have one-bedroom floor plans (30%). 3-bedroom apartments (15%) follow in popularity, while renters show the least interest in studios (12%).
The Commercial Real Estate Alpha Site 
Leave a comment