November Sees Stagnant Apartment Rents, Growth to Slow Even More in 2016

As 2015 comes to a close, year-end data is proving just how much rents have risen in the past year. According to the recent Yardi Matrix report, average rents for November were $1,165 – $1 less than October, but 6.4% higher than the same time last year. Prior to October, rents had risen for 9 months straight.

Fortunately for renters, it doesn’t appear that rents will increase equally as much next year. The Yardi Matrix forecast predicts rent growth will slow to about 4.5% in 2016 – higher than the 2.8% year-over-year average we’ve seen over the last decade, but significantly lower than this year. A few other high-level takeaways from this month’s Yardi Matrix include:

• The West Coast has seen the most growth. Portland takes the top spot, with rents rising 14.7% in the last year. San Francisco, Sacramento, and Seattle aren’t far behind, with increases of 11, 10.7 and 9.5%, respectively.
• Warmer areas are on the rise. It seems that the season is taking its toll, with warmer metros like Miami and Phoenix seeing rising rents as the weather turns cold. Orange County, Los Angeles, Tampa, and Dallas also saw growth.
• The East has remained at the bottom, in terms of rent growth. Baltimore, Philadelphia, Washington D.C., and Richmond, Virginia, have seen a less than 2% rise in rents since 2014.

• Lifestyle renters are on the decline. Lifestyle renters – those who choose rental apartments because of their way of life, rather than out of necessity – have decreased significantly in recent months. The Yardi Matrix report shows that 60% of the top 30 metros saw negative growth in the lifestyle sector over the last three months.
• Employment growth matches rent growth. Areas with strong gains in employment – particularly higher – income jobs – are seeing more year-over-year growth as well. This includes metros like San Francisco (3.8% job growth), Dallas (3.4%), and Atlanta (3.1%).

So what can you get for this month’s average rent of $1,165? Let’s take a look.

San Francisco

There’s no shortage of beautiful properties in San Francisco, and for $1,100 a month, you can afford a surprisingly large number of them. Just take the Candlestick Heights apartments, for example. With a variety of spacious floor plans, covered parking, a community garden, and a stunning view of the San Francisco Bay, this is a place you can truly call home. Rents at this affordable housing complex start at $924 for one-bedroom apartments.

Sacramento

In Sacramento, your money goes even further, with $1,100 giving you 2- and even 3-bedroom options at places like Shore Park. With a state-of-the-art fitness center, a sparkling pool and a variety of floor plans, it’s the perfect spot to spread your roots and call your own.

Raleigh

With growing employment opportunities (up 2.9% in 2015), as well as lower rent growth than a large portion of the country, the NC Triangle is the ideal spot for any renter. In 2015, rents in the Raleigh – Durham area jumped 6.0% y-o-y, reaching $1,027 in Q4. Raleigh renters may expect to shell out $1,036 per month on average while Durham rents sit somewhere around $984.

A great spot to consider in Raleigh? Try the Beachwood Park Apartments and Townhomes. With rents starting at just $825, this property offers private entrances, a resort-style pool, a 24-hour fitness center, jogging trails, and for the outdoorsy type, a canoe launch on the Neuse River. You get serious space for your money, too. For just $1,170, you’ll enjoy 3 bedrooms and a whopping 1,700 square feet.

Check out these and more rental properties in your area at RentCafe.com.