2018 Year End Rent Report – Rents Hold Strong at Year End, Las Vegas Among the Top Most Aggressive Markets

Key takeaways:

• The national average apartment rent ends the year with a strong 3.1% y-o-y increase, having reached $1,419, $42 above what renters were paying this time last year, according to Yardi Matrix.
• As of the end of the year and throughout 2018, rents have seen the most fluctuation in small cities, with double-digit percentage increases in Odessa, TX, Midland, TX, and Reno, NV.
• Queens, NY has been the only large market with stagnating rents, and only two small cities, Baton Rouge, LA and College Station, TX have seen significant decreases.

Favorable economic factors in 2018 and rising interest rates — which can cause delays in home-buying — pushed the U.S. average monthly rent to $1,419 by year-end, 3.1% or $42 more than at the end of 2017. The cost of renting an apartment started seeing annual increases above 2.5% in February, reached the highest month-over-month growth rate in May (0.8%) and peaked in September at $1,422 according to the latest data provided by Yardi Matrix.

Doug Ressler, Director of Business Intelligence at Yardi Matrix anticipates further growth in the demand for apartments in the new year. “Healthy job creation, a robust economy, and positive demographic trends are promoting the formation of new households and stimulating demand for rentals. Vacancies are likely to remain low and declining in most markets, particularly among Class B and C multifamily buildings.”

Las Vegas, Phoenix and LA plow on, Florida’s renter hubs hot on their heels

Aggressive increases in the price of Las Vegas apartments throughout the year have kept Sin City on the podium in terms of rent growth for most of the year, and by year-end, it has outpaced the largest renter hubs with rents almost 8% higher than last year. Phoenix apartments have also seen some of the fastest rent growths during 2018, and much like Las Vegas, the average rent in Phoenix passed the $1,000 mark by year-end thanks to a 7.7% Y-o-Y increase. Apartments for rent in Los Angeles now cost 6.6% more compared to the end of last year, earning it third place among the 20 largest renter hubs in the U.S. This translates into a $153 growth over 12 months, which is second only to Manhattan, where rents have increased by $157 (albeit that accounts for a more modest proportional change of 3.9% due to the $4,200 monthly average). The list continues with three Florida mega-hubs in close competition, Jacksonville (6.3%), Orlando (6.1%) and Tampa (5.4%).

One Year Rent Changes in 20 Renter Mega-Hubs

City	Average Rent YE 2018	Average Rent YE 2017	Percentage Change	Net Change
Manhattan (New York City), NY	$4,200	$4,043	3.9%	$157
Los Angeles, CA	$2,461	$2,308	6.6%	$153
Washington, D.C.	$2,138	$2,101	1.8%	$37
Seattle, WA	$2,045	$1,988	2.9%	$57
Chicago, IL	$1,889	$1,801	4.9%	$88
Denver, CO	$1,597	$1,524	4.8%	$73
Atlanta, GA	$1,426	$1,354	5.3%	$72
Orlando, FL	$1,389	$1,309	6.1%	$80
Austin, TX	$1,361	$1,304	4.4%	$57
Tampa, FL	$1,291	$1,225	5.4%	$66
Charlotte, NC	$1,177	$1,142	3.1%	$35
Dallas, TX	$1,182	$1,151	2.7%	$31
Houston, TX	$1,093	$1,075	1.7%	$18
Fort Worth, TX	$1,083	$1,043	3.8%	$40
Jacksonville, FL	$1,059	$996	6.3%	$63
Las Vegas, NV	$1,044	$968	7.9%	$76
San Antonio, TX	$1,016	$982	3.5%	$34
Phoenix, AZ	$1,011	$939	7.7%	$72
Columbus, OH	$910	$878	3.6%	$32
Indianapolis, IN	$848	$819	3.5%	$29

Cheap apartments and studios were the most searched rental terms of the year

There are many ways to measure demand, but since renters use the Web more than any other resource to look for their next apartment, search engines hold a very relevant record of what people really want. Google search phrases including ‘cheap apartments’ and ‘studios’ had by far the largest volume in 2018, adding up to almost half of all apartment-related online searches. Cheap apartments account for more than a quarter of rental-related queries, followed by studios (23.88%), showing that the interest in rentals was driven by a cost-conscious mindset this past year.

Check out the interactive word cloud below to see what else renters searched for in 2018. Tap or hover your mouse over the keywords to see the share of searches for each term:

One-, two- and three-bedroom apartments follow in that order, with 10.48%, 9.46% and 7.5% of all rental-related searches, respectively. Luxury apartments also saw significant interest among renters this year, accounting for 7% of searches.

As much of people’s online activity has migrated to GPS-enabled mobile devices, one third of the keywords people searched for in 2018 included the words ‘near me.’ This allows for a quicker identification of available homes for rent within a certain radius, saving apartment-seekers valuable time and also giving landlords a better and more targeted exposure.

NATIONAL: Small cities led in 2018 with highest rent increases

Most cities across the country saw their rents climb in 2018, and, mostly due to sheer size, small cities were the most vulnerable to increases. The top five highest year-over-year rent hikes in 2018 took place in small cities, and three of them saw double-digit jumps: in Odessa, TX rents went up 21.8%, Midland, TX saw a 21.4% average Y-o-Y increase, and rents in Reno, NV grew 10.2% over the past year. Peoria, AZ and Manchester, NH follow neck-and-neck with 9.7%.

LARGE CITIES: Las Vegas reinforced its top position, Phoenix joined the party in 2018

People in search of cheaper living options have had a big influence this year on what the top of the largest cities looks like in terms of rent growth. Cities like Las Vegas, NV and Phoenix, AZ have proven to be viable alternatives to big cities with suffocating housing costs for many. The increased demand is showing its effects, having kept Las Vegas firmly at the top of the list, and shooting Phoenix all the way to second place for rent growth among large markets. However, Los Angeles, CA is not far behind, rounding the podium with a 6.6% rent growth in 2018 in spite of boasting an average rent almost 2.5x higher than Phoenix or Las Vegas. Over to the East, Jacksonville, FL and Nashville, TN complete the top with 6.3% and 5.8%, respectively.

The slowest growth rates have been registered in Queens, NY (with more of a stagnation rather than a significant change), Baltimore, MD, Boston, MA, Houston, TX and Brooklyn, NY, in all cases under 2% year-over-year.

See the complete list of cities at the end of this report.

MID-SIZE CITIES: Mesa rents are the fastest growing despite California’s strong presence

Mesa, AZ was the hottest mid-size market or among the top contenders in every snapshot throughout the year. Sure enough, the year-end result also shows the Phoenix suburb running rings around all cities of similar size, and it is also in the top 10 nationwide with an 8.3% Y-o-Y increase. The top 5 fastest growing rents at this end of year is otherwise dominated by California markets Fresno, Riverside and Long Beach with growth rates of 5.7%, 5.6%, and 5.5%, respectively. Pittsburgh, PA breaks the lineup at 4^th place with a 5.6% rent increase over the 2017 year-end figure.

At the other end of the mid-size market chart, rents in Tulsa, OK and Lexington, KY close out the year unchanged, while Corpus Christi, TX, Wichita, KS and Virginia Beach, VA renters now pay between 1.4% and 1.7% more on average compared to last year.

SMALL CITIES: Where the largest changes took place in 2018 – for the better or worse

The most spectacular rent changes usually take place in small markets, and 2018 has been no exception. Odessa and Midland have both registered more than twice as fast increases as any other U.S. city, big or small. While Reno, NV, Peoria, AZ, and Manchester, NH are far behind that level, all three have come near the 10% mark this past year.

Rents have slowed down to a noteworthy degree only in Baton Rouge, LA (-2.4%) and College Station, TX (-1.1%). Although Waco, TX, Brownsville, TX and Pearland, TX did register decreases, these have remained under 1%.

Apartments in Manhattan still ask the highest prices, the average monthly price having just reached the $4,200 mark, followed by San Francisco with $3,609 and Boston with $3,292. The cheapest rents are in Wichita KS, averaging $640, Tulsa, OK ($682) and Brownsville, TX ($685 per month).

In between, there are several cities on the upper price range from Maryland: Boston and Cambridge; California: San Mateo, Sunnyvale, Santa Clara and San Jose; New Jersey: Jersey City; and New York: Brooklyn. At the bottom of the list, the cities with the lowest rents are located across Texas: Brownsville, Killeen and Amarillo; Kansas: Wichita; Ohio: Toledo and Dayton; Oklahoma: Tulsa and Oklahoma City; Missouri: Independence; and Indiana: Fort Wayne.

New apartments and rent trends in the largest metros

It’s also worth taking a look at each of the largest metropolitan areas to get a detailed picture of the local dynamics. See the slideshow below for a snapshot of new deliveries, the highest average rents and the biggest rent changes in some of the nation’s largest metros this past year.

Check the average price of rent in your city by using this interactive table:

City	State	AverageRent	ChangeMoM	ChangeYoY
Baton Rouge	LA	$1,028	-0.5%	-2.4%
College Station	TX	$1,185	-0.2%	-1.1%
Waco	TX	$951	0.1%	-0.6%
Brownsville	TX	$685	-0.1%	-0.6%
Pearland	TX	$1,275	0.1%	-0.2%
Norman	OK	$872	-0.5%	-0.2%
Queens	NY	$2,196	0.0%	-0.2%
Hartford	CT	$1,186	0.1%	-0.1%
Des Moines	IA	$884	-0.2%	0.2%
Irvine	CA	$2,393	-0.1%	0.4%
Stamford	CT	$2,382	0.3%	0.4%
Richardson	TX	$1,318	0.3%	0.5%
Akron	OH	$825	0.4%	0.6%
South Bend	IN	$899	0.1%	0.7%
Tulsa	OK	$682	-0.3%	0.7%
Lexington	KY	$888	0.2%	0.8%
Edison	NJ	$1,576	-0.4%	0.8%
Broken Arrow	OK	$809	0.2%	1.0%
Baltimore	MD	$1,249	-0.2%	1.1%
Naperville	IL	$1,446	0.6%	1.1%
Newark	NJ	$1,166	0.3%	1.1%
McKinney	TX	$1,233	0.0%	1.1%
Little Rock	AR	$776	-0.3%	1.2%
Boston	MA	$3,292	-0.2%	1.2%
Buffalo	NY	$1,048	-0.1%	1.3%
Waterbury	CT	$935	0.2%	1.3%
Corpus Christi	TX	$975	0.0%	1.4%
Wichita	KS	$640	-0.2%	1.4%
Plano	TX	$1,279	0.2%	1.4%
Amarillo	TX	$735	-0.1%	1.5%
Boulder	CO	$1,880	-0.9%	1.6%
Jersey City	NJ	$2,887	-0.6%	1.6%
Tallahassee	FL	$1,195	0.3%	1.6%
New Haven	CT	$1,661	0.2%	1.7%
Houston	TX	$1,093	0.2%	1.7%
Brooklyn	NY	$2,787	0.0%	1.7%
McAllen	TX	$775	0.3%	1.7%
Virginia Beach	VA	$1,177	-0.1%	1.7%
Washington	DC	$2,138	-0.2%	1.8%
Frisco	TX	$1,343	0.1%	1.8%
Overland Park	KS	$1,063	0.2%	1.8%
Irving	TX	$1,130	-0.2%	1.9%
Dayton	OH	$740	-0.1%	1.9%
Milwaukee	WI	$1,144	0.4%	2.0%
Corona	CA	$1,661	0.5%	2.0%
Jackson	MS	$773	-0.1%	2.0%
Hampton	VA	$1,014	0.2%	2.0%
Cincinnati	OH	$962	-0.3%	2.0%
Santa Maria	CA	$1,552	1.1%	2.0%
Independence	MO	$736	0.1%	2.1%
Warren	MI	$783	-0.8%	2.1%
Kansas City	MO	$972	0.1%	2.1%
Norfolk	VA	$1,062	-0.1%	2.1%
Miramar	FL	$1,826	-0.2%	2.1%
Cambridge	MA	$3,079	0.0%	2.2%
Las Cruces	NM	$805	0.1%	2.2%
Mobile	AL	$800	0.0%	2.2%
Augusta	GA	$794	-0.4%	2.2%
Chesapeake	VA	$1,197	-0.2%	2.2%
St. Petersburg	FL	$1,272	-0.2%	2.3%
Madison	WI	$1,219	-0.1%	2.3%
Vallejo	CA	$1,740	-0.1%	2.4%
Pasadena	TX	$868	-0.6%	2.4%
Columbus	GA	$853	0.2%	2.4%
Killeen	TX	$713	0.0%	2.4%
Detroit	MI	$1,029	-1.2%	2.5%
St. Louis	MO	$904	-0.1%	2.5%
Ann Arbor	MI	$1,502	-0.1%	2.5%
Syracuse	NY	$1,085	-0.5%	2.6%
Colorado Springs	CO	$1,113	-0.2%	2.6%
Oklahoma City	OK	$752	0.0%	2.6%
Hollywood	FL	$1,434	-0.4%	2.6%
Dallas	TX	$1,182	0.1%	2.7%
Columbia	SC	$1,029	0.3%	2.7%
Fort Wayne	IN	$750	-0.8%	2.7%
Round Rock	TX	$1,144	-0.3%	2.8%
Seattle	WA	$2,045	-0.2%	2.9%
Renton	WA	$1,643	-0.6%	2.9%
Aurora	CO	$1,321	-0.8%	2.9%
New Orleans	LA	$1,127	0.6%	2.9%
Rochester	NY	$1,014	-0.1%	2.9%
Yonkers	NY	$1,973	0.4%	3.0%
Murrieta	CA	$1,622	0.4%	3.0%
Lincoln	NE	$942	-0.2%	3.1%
Charlotte	NC	$1,177	-0.4%	3.1%
Alexandria	VA	$1,702	-0.4%	3.1%
Portland	OR	$1,497	-0.2%	3.1%
Louisville	KY	$924	-0.1%	3.1%
Pembroke Pines	FL	$1,714	-0.3%	3.1%
Kent	WA	$1,444	-0.5%	3.1%
Hillsboro	OR	$1,503	0.1%	3.2%
Albuquerque	NM	$869	0.1%	3.2%
Roseville	CA	$1,636	-0.8%	3.2%
Orange	CA	$2,020	0.0%	3.2%
Sterling Heights	MI	$917	-0.3%	3.3%
Minneapolis	MN	$1,536	-0.1%	3.3%
Omaha	NE	$903	0.1%	3.3%
Mesquite	TX	$960	0.0%	3.3%
Arlington	VA	$2,149	-0.6%	3.4%
Fort Collins	CO	$1,502	-0.5%	3.4%
Costa Mesa	CA	$2,066	0.0%	3.4%
Aurora	IL	$1,305	0.2%	3.4%
Concord	CA	$1,958	0.4%	3.4%
Philadelphia	PA	$1,565	-0.6%	3.4%
Burbank	CA	$2,275	0.8%	3.5%
Denton	TX	$1,196	-0.3%	3.5%
San Antonio	TX	$1,016	0.2%	3.5%
Murfreesboro	TN	$1,101	-0.1%	3.5%
Fort Lauderdale	FL	$1,921	0.1%	3.5%
Indianapolis	IN	$848	-0.1%	3.5%
Olathe	KS	$935	0.1%	3.5%
Lubbock	TX	$924	0.0%	3.6%
Fullerton	CA	$1,873	0.1%	3.6%
Arlington	TX	$1,005	-0.6%	3.6%
Lakewood	CO	$1,482	-0.6%	3.6%
Columbus	OH	$910	0.0%	3.6%
Pompano Beach	FL	$1,380	0.0%	3.7%
Macon	GA	$814	-0.1%	3.7%
Vancouver	WA	$1,289	-0.2%	3.7%
Lansing	MI	$838	-0.1%	3.7%
Lewisville	TX	$1,140	-0.5%	3.7%
El Paso	TX	$772	-0.4%	3.8%
Santa Rosa	CA	$1,955	-0.9%	3.8%
Birmingham	AL	$962	-0.6%	3.8%
Oakland	CA	$2,707	0.0%	3.8%
Santa Ana	CA	$1,914	0.2%	3.8%
Greensboro	NC	$871	-0.1%	3.8%
Cleveland	OH	$1,056	0.1%	3.8%
Fort Worth	TX	$1,083	-0.3%	3.8%
Carlsbad	CA	$2,271	-0.1%	3.8%
Thousand Oaks	CA	$2,108	0.3%	3.8%
Elizabeth	NJ	$1,231	0.1%	3.9%
Manhattan	NY	$4,200	0.0%	3.9%
Vista	CA	$1,764	0.3%	3.9%
Anaheim	CA	$1,781	0.1%	3.9%
Modesto	CA	$1,193	-0.1%	3.9%
Carrollton	TX	$1,192	-0.2%	3.9%
Newport News	VA	$941	0.0%	4.0%
Bellevue	WA	$2,157	-0.6%	4.1%
Durham	NC	$1,127	0.0%	4.1%
Everett	WA	$1,402	-0.5%	4.1%
Cary	NC	$1,171	0.3%	4.1%
North Charleston	SC	$1,007	-0.7%	4.1%
Metairie	LA	$926	0.8%	4.2%
Fontana	CA	$1,273	-0.2%	4.2%
Raleigh	NC	$1,159	0.0%	4.2%
Hialeah	FL	$1,353	0.1%	4.2%
Fremont	CA	$2,424	0.2%	4.3%
Austin	TX	$1,361	-0.2%	4.4%
Sandy Springs	GA	$1,451	0.0%	4.4%
Bakersfield	CA	$973	0.0%	4.4%
Miami	FL	$1,684	0.4%	4.5%
Gresham	OR	$1,262	-0.3%	4.5%
San Jose	CA	$2,723	-0.4%	4.5%
West Covina	CA	$1,806	-0.1%	4.5%
Escondido	CA	$1,587	-0.1%	4.5%
Pasadena	CA	$2,543	-0.2%	4.6%
Charleston	SC	$1,301	-1.1%	4.6%
Kansas City	KS	$790	0.0%	4.6%
Eugene	OR	$1,306	0.3%	4.6%
Thornton	CO	$1,413	-0.5%	4.7%
Brandon	FL	$1,184	-0.3%	4.7%
Richmond	VA	$1,065	0.0%	4.7%
Grand Prairie	TX	$1,082	-0.4%	4.7%
Winston-Salem	NC	$832	0.0%	4.8%
Denver	CO	$1,597	-0.7%	4.8%
Tempe	AZ	$1,302	-0.2%	4.8%
Glendale	CA	$2,513	0.4%	4.8%
Chicago	IL	$1,889	-0.3%	4.9%
West Palm Beach	FL	$1,437	0.6%	5.0%
Memphis	TN	$780	-0.3%	5.0%
Garland	TX	$1,030	-0.1%	5.0%
Coral Springs	FL	$1,702	-0.8%	5.0%
San Francisco	CA	$3,609	0.0%	5.0%
Simi Valley	CA	$1,989	0.4%	5.0%
Lakeland	FL	$1,022	0.1%	5.0%
Ventura	CA	$1,971	0.5%	5.1%
Salem	OR	$1,018	-0.1%	5.2%
Wilmington	NC	$1,098	0.1%	5.2%
Garden Grove	CA	$1,735	0.2%	5.2%
Savannah	GA	$1,060	-0.2%	5.3%
Tucson	AZ	$840	0.4%	5.3%
El Cajon	CA	$1,514	-0.3%	5.3%
Pomona	CA	$1,510	1.0%	5.3%
San Diego	CA	$2,182	-0.2%	5.3%
Atlanta	GA	$1,426	0.3%	5.3%
West Valley City	UT	$1,125	-0.1%	5.3%
Stockton	CA	$1,142	0.3%	5.4%
Sacramento	CA	$1,358	-0.5%	5.4%
Tampa	FL	$1,291	-0.2%	5.4%
Chula Vista	CA	$1,739	-0.3%	5.4%
Davie	FL	$1,749	-0.1%	5.4%
Rancho Cucamonga	CA	$1,845	0.1%	5.4%
Clovis	CA	$1,084	0.1%	5.4%
Long Beach	CA	$1,985	0.0%	5.5%
San Mateo	CA	$3,212	-0.5%	5.5%
Pittsburgh	PA	$1,212	-0.2%	5.6%
Ontario	CA	$1,680	0.2%	5.6%
West Jordan	UT	$1,144	0.5%	5.6%
Oceanside	CA	$1,790	-0.1%	5.7%
Riverside	CA	$1,523	0.2%	5.7%
Santa Clara	CA	$2,850	-0.6%	5.7%
Temecula	CA	$1,659	0.0%	5.7%
Fresno	CA	$1,047	0.1%	5.8%
Moreno Valley	CA	$1,463	0.6%	5.8%
Nashville	TN	$1,346	0.1%	5.8%
Paradise	NV	$866	0.2%	5.9%
Fairfield	CA	$1,779	0.3%	5.9%
Clearwater	FL	$1,182	-0.2%	5.9%
Sunnyvale	CA	$2,900	-0.4%	5.9%
Toledo	OH	$709	0.1%	6.0%
Hayward	CA	$2,158	0.0%	6.0%
Tacoma	WA	$1,263	-0.2%	6.0%
Victorville	CA	$1,100	0.2%	6.1%
Orlando	FL	$1,389	-0.4%	6.1%
Grand Rapids	MI	$1,032	1.0%	6.2%
Arvada	CO	$1,408	-0.6%	6.2%
Chattanooga	TN	$968	0.2%	6.3%
Torrance	CA	$1,913	0.3%	6.3%
Westminster	CO	$1,467	-0.6%	6.3%
Jacksonville	FL	$1,059	-0.2%	6.3%
Greeley	CO	$1,142	-0.3%	6.4%
Spokane	WA	$967	0.5%	6.5%
North Las Vegas	NV	$1,032	0.4%	6.5%
Oxnard	CA	$1,938	0.8%	6.5%
Gilbert	AZ	$1,227	0.1%	6.6%
Los Angeles	CA	$2,461	0.3%	6.6%
Santa Clarita	CA	$1,942	1.0%	6.6%
Salinas	CA	$1,657	-0.5%	6.7%
Huntington Beach	CA	$2,146	0.1%	7.0%
Knoxville	TN	$1,021	0.2%	7.2%
Rialto	CA	$1,281	0.2%	7.4%
Salt Lake City	UT	$1,196	0.2%	7.5%
Daly City	CA	$2,532	0.1%	7.5%
Scottsdale	AZ	$1,433	-0.1%	7.5%
Gainesville	FL	$1,248	0.4%	7.6%
Phoenix	AZ	$1,011	-0.2%	7.7%
Las Vegas	NV	$1,044	0.4%	7.9%
High Point	NC	$808	0.5%	7.9%
Glendale	AZ	$937	-0.3%	8.1%
Chandler	AZ	$1,258	0.3%	8.3%
Mesa	AZ	$974	-0.3%	8.3%
Boise	ID	$1,110	0.5%	8.4%
Henderson	NV	$1,249	0.3%	8.5%
San Bernardino	CA	$1,231	0.2%	8.6%
Lancaster	CA	$1,284	0.3%	9.1%
Manchester	NH	$1,370	0.6%	9.7%
Peoria	AZ	$1,137	-0.2%	9.7%
Reno	NV	$1,248	-0.7%	10.2%
Midland	TX	$1,561	0.4%	21.4%
Odessa	TX	$1,363	-0.1%	21.8%
Honolulu	HI	$1,771	-1.1%	NULL

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Methodology:

RentCafe is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States.

To compile this report, RentCafe’s research team analyzed rent data across the 252 largest cities in the US. The report is exclusively based on apartment data related to buildings containing 50 or more units. Our report includes cities with populations over 100,000 and a rental stock of at least 2,900 apartments in 50+ unit buildings.

In this report, large cities are cities with a population of 600,000 people or more, mid-sized cities are cities with a population between 300,000 and 600,000, and small cities are cities with a population of less than 300,000.

Rent data was provided by Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors. Rental rate coverage is for Market Rate properties only. Fully Affordable properties are not included in the Yardi Matrix rental surveys and are not reported in rental rate averages.

Starting with the January 2017 rent survey, Yardi Matrix is using a methodology that incorporates more properties into the sample which caused slight changes in overall rents and year-over-year changes compared to the previous reports. We expect this methodology adjustment to produce more accurate averages at the national and metro levels.

*National averages include over 130 markets across the U.S., as reported by Yardi Matrix.

Search terms were collected from Google searches, analyzed and ranked based on average monthly volume, and grouped by core terms according to user intent.