Rents Surge 4.3% in April Led by West, Southeast Metros

Average rents rose nationally a healthy 4.3 % year-over-year, according to the latest Yardi Matrix Monthly report on apartment market trends. Rents averaged $1,105 in April, but remain slightly below the all-time high of $1,108 recorded in February 2015.

Top-performing markets: biggest gainers

A combination of economic and demographic factors, including consistent job growth, strong demand for apartment living and a limited supply, has helped push up rents all across the country. San Francisco, Portland, Seattle, and Denver saw the biggest gains in terms of rent growth in April, with demand for higher-end Lifestyle properties contributing to this general trend, the report notes.

Many of the markets showing the highest year-over-year increases are located in the West and four – Jacksonville, Atlanta, Orlando, and Miami – are in the Southeast. Surprisingly, the high-employment Texas markets – Dallas, Houston, Austin, and San Antonio – are closer to the national average, as can be seen in the report.

Metros in West, South lead the pack

For the second straight month, the technology-heavy Western metros – Denver, San Francisco, and Portland – were the top three markets for trailing 12-month rent growth. Seattle and Sacramento also made the top six. Atlanta ranked at number 4, with Miami and Orlando landing the 7th and 8th spots respectively. Rounding out the top 10 were Houston (9th) and the San Fernando Valley of Los Angeles (10th).

Low inventory levels and consistent job creation have driven prices to new heights in top-performing markets like San Francisco and Houston. Average asking rent for a San Francisco apartment is $3,289 according to data from RentCafe.com, while the average rent for a home in Houston is $1,292.

The highest rents are generally associated with units in luxury apartment buildings that offer amenity-rich environments. Specifically tailored for those who seek lifestyle and convenience in their housing choices, these developments feature such facilities as resort-style pools, rooftop gardens, fitness centers, dog runs, green enhancements, as well as proximity to inner city centers.

Multifamily powered up by employment growth

Markets in which employment growth far exceeded housing supply growth include Atlanta, the Inland Empire in California, Las Vegas, and Sacramento. At the other end of the index stand Washington DC, The Triangle in North Carolina, and Chicago. “In 23 of the 31 metros surveyed, the 6-month moving average job growth exceeded the rate of multifamily completions as a percentage of supply over the 12 months ending in April. The upshot in demand is expected to be strong, which should produce solid absorption in most markets, despite the rate of growth in supply,” notes the Yardi Matrix report.

What can you rent for the national average in tight markets?

While finding a good place to rent can be challenging, especially when talking about tight markets such as San Francisco or L.A., it can be done with a bit of research and forethought. Prospective renters may easily tap into RentCafe’s extensive rental database and filter their apartment searches based on specific preferences including location (neighborhood, zip code, radius, and polygon) and pricing.

More than 15,000 apartment communities listed on RentCafe feature rental homes with rents below the national average. Here’s just a preview of what’s available in some of the country’s most competitive markets for around $1,105 per month.

Los Angeles

The Chadwick in L.A.’s Koreatown offers studio, one-, and two-bedroom apartments with rents ranging from $850 to $1,750. Community amenities include 2 basketball courts, 2 tennis courts, a business center, a state-of-the-art fitness facility, and a resort-style pool.

San Francisco

We wanted to find a home in a quiet San Francisco neighborhood that offers convenient access to the city’s finest shopping and dining destinations so we looked in Hayes Valley. For a little more than the national average, residents of Hayes Valley Apartments at 401 Rose Street enjoy a pet-friendly, modern community that offers complimentary public Wi-Fi, a computer lab, and a day care facility on-site. Located near the Lower Haight, Lower Hayes, Japantown, and Downtown areas of San Francisco, the complex also provides easy access to the Orpheum Theatre and the AT&T Park.

Seattle

For about the same amount ($1400 – $1600), you can rent a gorgeous apartment in Seattle’s South Lake Union neighborhood. The Boxcar rental community features a fitness center, leisure and activity areas with free Wi-Fi, a beautiful courtyard, rooftop gardens, and sub-level parking. The apartments come with high ceilings, rich espresso finishes, enormous windows, generous closets, as well as stunning city or mountain views.

Houston

With rents starting at $1089 for one-bedroom apartments, The Standard on West Dallas apartment community in Houston offers exquisite amenities in a great location. Sitting prettily at 2210 West Dallas in the sought-after Neartown – Montrose neighborhood, the building features such amenities as a fitness center, picnic areas with barbecue grills, and a swimming pool with a fountain.

Ready to dive in? Start searching for your next apartment on RentCafe.com.