National Rents on Pause for the Entire Peak Rental Season, Including Priciest Cities; Mid-Sized Cities Continue Rally

Key takeaways:

• The national average rent was $1,354 in September, remaining virtually flat for the 4th month in a row, and showing the slowest annual growth in six years — 2.2% — according to Yardi Matrix.
• 82% of the 250 biggest cities in the U.S. (205 in total) experienced growth over the past year; 35 cities saw rents flat-line, and 10 cities had rent decreases.
• Texas tertiary markets are at both ends of the scale: Lubbock and Round Rock saw the biggest y-o-y rent decreases, while Odessa and Midland the highest y-o-y increases in the country. 
• Manhattan, San Francisco, Brooklyn rents have stabilized in September, with 0% month-over-month changes. 

National rents have barely moved through the entire peak rental season and into September, marking the longest period of stagnation in recent history — 4 consecutive months. Coming in at $1,354 for the month of September, the average rent is only 2.2 percent higher than this time last year. This is the slowest annual growth rate we’ve seen in more than six years — having reached a high point of 5.5%-5.6% peak growth around two years ago — a pretty good indicator that the rental market has entered calmer waters.

Still, that doesn’t mean rents have flat-lined everywhere. Though nationally and in the most expensive cities for renters prices have finally come to a full stop, there are still some holdouts—and it seems renters in smaller and mid-sized cities are not yet getting a break, on the contrary.

In-demand one-, two-bedroom units keep rising in price

One- and two-bedroom apartment units are seeing rents grow much faster than their larger and smaller counterparts. In fact, two-bedroom unit rents have jumped 2.8 percent in the last year, while studio apartments have risen just 1.9 percent. Coming in at $1,329 per month, rents on two-bedroom units actually dipped since August, but still clock in with the highest year-over-year growth rate out of all apartment sizes.

Three-bedroom units have posted rent growth of 2.4 percent since last year, hitting $1,555 per month in September—a 0.1 percent drop since August. Studio apartments, which average $1,190 now, rose 0.1 percent over the month, while one-bedrooms ($1,162) flat-lined over August.

Bedroom Type	Average Rent	Change M-o-M	Change Y-o-Y
Studio	$1,190	0.1%	1.9%
1 Bed	$1,162	0.0%	2.7%
2 Beds	$1,329	-0.1%	2.8%
3 Beds	$1,555	-0.1%	2.4%

Texas rents crack under pressure, New Orleans rents also take a plunge

The anticipated rent drops from Hurricane Harvey have not been realized in the city of Houston, but are seen in other Texas communities, with the biggest changes being outside of Harvey’s reach, as a result of the major apartment construction taking place throughout the state. Lubbock, located on the west side of the state, came in at No. 1 for biggest year-over-year rent decreases in the nation, with rents dropping 3.4 percent since 2016.

Rents for apartments in Round Rock, a suburb outside Austin—another city barely touched by Harvey, dipped to $1,092—3.4 percent below last year’s numbers. Round Rock took the No. 2 spot for biggest rent decreases of the year.

Texas claimed the third spot, too, with McAllen’s 2.6 percent drop in rents since last year, and three other Texas towns—College Station, Waco and Plano—also made the top 10, with decreases of 2.4 percent, 2 percent, and 1.1 percent, respectively. The rest of the list was spread throughout the nation, with California’s Simi Valley taking No. 4 (down 2.6 percent), New Orleans at No. 5 (down 2.4 percent), Manhattan, NYC at No. 8 (down 1.9 percent), and Tulsa, Oklahoma at No. 9 (down 1.5 percent.)

U.S. Cities Where Rents Have Fallen Y-o-Y

#	City	State	Change Y-o-Y	Average Rent
1	Lubbock	TX	-3.4%	$897
2	Round Rock	TX	-3.4%	$1,092
3	McAllen	TX	-2.9%	$758
4	Simi Valley	CA	-2.6%	$1,842
5	New Orleans	LA	-2.4%	$1,090
6	College Station	TX	-2.4%	$1,173
7	Waco	TX	-2.0%	$930
8	Manhattan (New York City)	NY	-1.9%	$4,093
9	Tulsa	OK	-1.5%	$672
10	Plano	TX	-1.1%	$1,243

Mid- and small-sized cities continue to shock renters with fast-growing rents

Though smaller and mid-sized towns used to be a haven for renters looking to avoid the sky-high prices of large urban areas, it seems those days are in the past. September’s list of fastest-growing rents is dominated by small and medium-sized towns—many boasting double-digit growth since this time last year.

The Lone Star State’s Odessa and Midland—both hubs of oil and gas activity—came in at the top two spots, with jumps of 24.7 percent and 20.7 percent, respectively. Odessa rents now clock in at $1,060 per month, while Midland’s reach even higher, coming in at $1,225.

The rest of the nation’s fastest-growing rents can be found largely on the West Coast, with California, Washington, Nevada and Colorado taking up the remaining bulk of the list. The only Northeastern cities to see big year-over-year rent growth were Buffalo, New York, with an 11.2 percent jump over 2016, and Elizabeth, New Jersey, which saw rents climb 8.5 percent to $1,187.

The housing market follows a cyclical path. The fact that the prime summer seasonality did not cause significant rental growth is the latest signal that the market may be cooling. However, these changes will be felt gradually, first in the largest and most expensive cities, followed by mid-sized markets, and eventually trickling down to smaller towns.  We anticipate different situations happening at the local level depending on the local economy and how many apartments are available to serve the local needs, Doug Ressler, Senior Analyst with Yardi Matrix explains.

The Cities with the Fastest Growing Rents – September 2017

#	City	State	Change Y-o-Y	Average Rent
1	Odessa	TX	24.7%	$1,060
2	Midland	TX	20.7%	$1,225
3	Lancaster	CA	11.9%	$1,154
4	Buffalo	NY	11.2%	$1,013
5	Reno	NV	11.0%	$1,121
6	Colorado Springs	CO	8.8%	$1,074
7	Kent	WA	8.8%	$1,409
8	Elizabeth	NJ	8.5%	$1,187
9	Thousand Oaks	CA	8.3%	$2,090
10	Sacramento	CA	8.1%	$1,263

Other cities on the list are Lancaster, CA; Reno, NV; Colorado Springs, CO; Kent, WA; Thousand Oaks, CA and Sacramento, CA.

Northeast and SF Bay Area still too hot to touch, the good old Midwest and Texas most affordable

Despite the big jumps in cities like Midland and Odessa, Texas is still home to many of the nation’s lowest rent prices. Killeen, Brownsville and Amarillo all made the list of lowest rents this month, coming in with averages of $688, $694 and $726.

Not surprisingly, the Midwest also boasts a big portion of America’s most affordable rents, with Wichita, Kansas taking the No. 1 spot. At just $633 per month, Wichita rentals demand the single lowest rent in the entire nation — and has held that rank for many months running. Midwestern cities Independence, Missouri; Toledo, Ohio; Fort Wayne, Indiana; and Dayton, Ohio, also made the list.

On the other end of the spectrum, the San Francisco Bay Area, New York, and Boston are the sky-high rent trifecta. The Bay Area dominates the list of the most expensive rents yet again, claiming five of the top ten spots. San Francisco is second in the U.S. with an average rent of $3,440 per month, and Boston apartments are third with $3,232.

Manhattan is, of course, No. 1 with an average monthly apartment rent of no less than $4,093. Neighboring Brooklyn also made the top 10 list, with rents of $2,724 in September.

Rents stay put in priciest U.S. cities at the end of the 2017 peak rental season

Just like national rents were steady this peak season, so were the country’s most expensive locales. The Northeast and West Coast have laid claim to the priciest rental markets for ages, and September’s numbers show no signs of a change.

As in August, Manhattan, San Francisco, Boston and San Jose all came in with some of the most expensive average rents in America, but none increased over the month and have shown weak year-over-year growth.

In Sunnyvale, California, rents are now $2,793 per month—the nation’s seventh most expensive and a 5.6 percent jump since last year. Santa Clara, California has seen a 4.1 percent uptick in rents over the year, and San Mateo’s rents have risen 3.1 percent. The price of apartments in Jersey City (now at $2,859) climbed more moderately by 2.7 percent over the previous year.

The peak season may be over, but with these sorts of numbers on the books, renters in these historically expensive markets should not expect any major changes.

Curious about rent in cities like Charlotte, Raleigh, Cincinnati, or Dallas? See where your city stands when it comes to rents by checking out this table:

City	State	Average Rent	Change M-o-M	Change Y-o-Y
Manhattan (New York City)	NY	$4,093	0.00%	-1.90%
San Francisco	CA	$3,440	0.00%	0.40%
Boston	MA	$3,232	-0.50%	0.00%
San Mateo	CA	$3,083	-0.40%	3.10%
Cambridge	MA	$3,039	-0.70%	0.50%
Jersey City	NJ	$2,859	0.60%	2.70%
Sunnyvale	CA	$2,793	-0.60%	5.60%
Santa Clara	CA	$2,750	-0.50%	4.10%
Brooklyn (New York City)	NY	$2,724	0.00%	-0.90%
San Jose	CA	$2,646	-0.60%	2.60%
Oakland	CA	$2,520	-0.30%	0.30%
Daly City	CA	$2,510	0.80%	3.70%
Irvine	CA	$2,383	0.20%	3.60%
Stamford	CT	$2,377	-0.30%	0.50%
Pasadena	CA	$2,354	1.40%	3.30%
Fremont	CA	$2,354	-0.50%	0.80%
Glendale	CA	$2,299	0.30%	1.80%
Los Angeles	CA	$2,289	0.30%	6.30%
Bellevue	WA	$2,158	-0.30%	5.90%
Carlsbad	CA	$2,152	0.00%	1.10%
Burbank	CA	$2,132	0.40%	1.70%
Thousand Oaks	CA	$2,090	-0.50%	8.30%
Arlington	VA	$2,088	-0.50%	0.60%
Washington	DC	$2,072	0.30%	0.10%
Hayward	CA	$2,047	-0.20%	3.20%
San Diego	CA	$2,033	-0.30%	3.30%
Seattle	WA	$2,016	-0.10%	7.30%
Huntington Beach	CA	$2,006	0.20%	3.20%
Costa Mesa	CA	$1,983	0.30%	2.20%
Orange	CA	$1,962	0.30%	4.00%
Concord	CA	$1,877	-0.40%	3.40%
Long Beach	CA	$1,865	0.30%	2.20%
Yonkers	NY	$1,862	-0.30%	7.30%
Santa Rosa	CA	$1,855	1.20%	6.40%
Santa Clarita	CA	$1,851	-0.10%	1.80%
Ventura	CA	$1,846	0.20%	7.00%
Simi Valley	CA	$1,842	-0.30%	-2.60%
Oxnard	CA	$1,836	0.50%	6.00%
Chicago	IL	$1,825	0.10%	4.00%
Miramar	FL	$1,819	0.40%	1.80%
Santa Ana	CA	$1,814	0.20%	2.80%
Fullerton	CA	$1,804	0.20%	4.70%
Torrance	CA	$1,777	0.00%	6.50%
Rancho Cucamonga	CA	$1,753	0.80%	3.80%
Boulder	CO	$1,749	-0.40%	1.20%
Fort Lauderdale	FL	$1,744	-0.50%	2.50%
Davie	FL	$1,732	-0.60%	3.30%
Anaheim	CA	$1,702	0.40%	5.30%
Vallejo	CA	$1,696	0.30%	4.40%
West Covina	CA	$1,689	0.20%	6.40%
Oceanside	CA	$1,679	-0.20%	4.00%
Pembroke Pines	FL	$1,673	0.00%	6.80%
Alexandria	VA	$1,672	-0.60%	0.50%
Vista	CA	$1,665	0.20%	2.00%
Garden Grove	CA	$1,651	-0.10%	5.00%
Fairfield	CA	$1,646	-0.30%	4.90%
Chula Vista	CA	$1,636	-0.40%	5.50%
Coral Springs	FL	$1,633	-0.40%	1.40%
Roseville	CA	$1,623	0.20%	6.70%
New Haven	CT	$1,612	-0.20%	4.10%
Miami	FL	$1,597	-0.40%	2.50%
Renton	WA	$1,595	-0.40%	6.00%
Corona	CA	$1,588	0.80%	4.30%
Ontario	CA	$1,577	0.20%	3.60%
Murrieta	CA	$1,569	0.60%	4.30%
Temecula	CA	$1,562	1.10%	3.90%
Salinas	CA	$1,555	-1.50%	4.90%
Hillsboro	OR	$1,543	0.30%	4.50%
Edison	NJ	$1,526	0.10%	3.20%
Denver	CO	$1,518	-0.30%	3.30%
Philadelphia	PA	$1,496	-0.30%	1.40%
Escondido	CA	$1,481	-0.10%	4.60%
Santa Maria	CA	$1,479	-2.50%	3.10%
Minneapolis	MN	$1,471	0.30%	4.70%
Naperville	IL	$1,458	-0.50%	3.50%
Portland	OR	$1,458	0.40%	0.70%
Pomona	CA	$1,442	0.80%	0.60%
Lakewood	CO	$1,442	-0.30%	4.90%
Ann Arbor	MI	$1,442	-0.70%	2.50%
Riverside	CA	$1,429	0.80%	5.30%
Fort Collins	CO	$1,427	-0.40%	5.50%
El Cajon	CA	$1,418	0.10%	5.20%
Sandy Springs	GA	$1,415	0.10%	4.40%
Kent	WA	$1,409	-0.10%	8.80%
Moreno Valley	CA	$1,377	0.40%	5.40%
Westminster	CO	$1,363	-0.40%	1.50%
Everett	WA	$1,362	-0.40%	5.00%
Thornton	CO	$1,358	-0.30%	2.00%
Atlanta	GA	$1,354	0.10%	3.80%
West Palm Beach	FL	$1,332	0.80%	3.90%
Hollywood	FL	$1,329	-0.10%	4.30%
Frisco	TX	$1,317	-0.80%	1.10%
Austin	TX	$1,309	-0.20%	0.50%
Scottsdale	AZ	$1,308	0.60%	4.40%
Arvada	CO	$1,303	-0.40%	4.60%
Pompano Beach	FL	$1,301	0.40%	6.40%
Richardson	TX	$1,293	-0.80%	0.50%
Orlando	FL	$1,282	-0.20%	3.70%
Aurora	CO	$1,277	-0.40%	4.30%
Aurora	IL	$1,270	-0.10%	2.80%
Pearland	TX	$1,263	0.90%	0.20%
Sacramento	CA	$1,263	0.60%	8.10%
Nashville	TN	$1,258	-0.60%	2.90%
Hialeah	FL	$1,256	-0.30%	4.90%
Manchester	NH	$1,244	-0.10%	3.40%
Plano	TX	$1,243	-1.20%	-1.10%
Eugene	OR	$1,237	-0.10%	2.80%
Tempe	AZ	$1,228	0.70%	5.20%
Charleston	SC	$1,226	-1.00%	1.80%
Midland	TX	$1,225	2.00%	20.70%
Baltimore	MD	$1,225	0.20%	3.40%
Vancouver	WA	$1,223	0.50%	3.60%
McKinney	TX	$1,217	-1.10%	0.90%
Tampa	FL	$1,209	-0.20%	4.60%
St. Petersburg	FL	$1,205	-0.50%	5.50%
Gresham	OR	$1,200	0.40%	1.10%
Madison	WI	$1,195	-0.70%	2.40%
Hartford	CT	$1,191	-0.50%	2.70%
Newark	NJ	$1,188	2.50%	6.30%
Elizabeth	NJ	$1,187	1.40%	8.50%
Fontana	CA	$1,185	0.30%	5.10%
College Station	TX	$1,173	-0.50%	-2.40%
Tacoma	WA	$1,172	0.40%	7.70%
Rialto	CA	$1,155	0.30%	2.40%
Lancaster	CA	$1,154	0.30%	11.90%
Chesapeake	VA	$1,153	-0.70%	3.00%
Pittsburgh	PA	$1,147	-0.30%	2.60%
Denton	TX	$1,145	0.00%	1.70%
Tallahassee	FL	$1,145	-0.10%	1.40%
Gainesville	FL	$1,145	-0.30%	3.30%
Virginia Beach	VA	$1,142	0.00%	2.10%
Carrollton	TX	$1,141	-0.70%	2.40%
Charlotte	NC	$1,139	-0.30%	2.80%
Cary	NC	$1,137	-0.10%	2.30%
Dallas	TX	$1,133	-0.40%	3.80%
Chandler	AZ	$1,126	0.50%	3.70%
Raleigh	NC	$1,122	0.20%	2.90%
Reno	NV	$1,121	0.10%	11.00%
Gilbert	AZ	$1,113	0.90%	2.80%
Brandon	FL	$1,112	-0.50%	0.50%
Salt Lake City	UT	$1,108	0.00%	4.80%
Clearwater	FL	$1,106	-0.20%	3.10%
San Bernardino	CA	$1,105	0.20%	4.10%
Henderson	NV	$1,104	-0.70%	2.70%
Lewisville	TX	$1,102	-0.30%	1.00%
Irving	TX	$1,098	-0.30%	4.00%
Modesto	CA	$1,096	0.00%	5.60%
Milwaukee	WI	$1,095	0.20%	1.70%
Round Rock	TX	$1,092	-0.60%	-3.40%
New Orleans	LA	$1,090	-0.20%	-2.40%
Durham	NC	$1,081	0.20%	4.60%
Colorado Springs	CO	$1,074	0.70%	8.80%
West Jordan	UT	$1,070	0.70%	0.80%
Odessa	TX	$1,060	1.60%	24.70%
Baton Rouge	LA	$1,056	0.00%	2.20%
Stockton	CA	$1,054	0.30%	7.10%
Murfreesboro	TN	$1,053	-0.40%	2.40%
Greeley	CO	$1,049	-0.30%	2.90%
Syracuse	NY	$1,045	0.80%	2.70%
Houston	TX	$1,043	0.70%	0.20%
Wilmington	NC	$1,039	0.60%	3.20%
West Valley City	UT	$1,038	-0.10%	2.90%
Fort Worth	TX	$1,033	0.00%	5.30%
Norfolk	VA	$1,029	0.10%	1.80%
Grand Prairie	TX	$1,027	-0.20%	5.80%
Overland Park	KS	$1,022	0.10%	1.30%
Savannah	GA	$1,021	-0.10%	2.10%
Buffalo	NY	$1,013	-0.20%	11.20%
Boise	ID	$1,009	0.40%	4.80%
Cleveland	OH	$1,009	0.10%	3.70%
Richmond	VA	$1,008	-0.10%	3.10%
Victorville	CA	$1,005	0.20%	6.10%
Peoria	AZ	$999	0.20%	4.00%
Clovis	CA	$996	0.40%	3.40%
Columbia	SC	$993	-0.10%	4.30%
Hampton	VA	$986	-0.10%	3.50%
Jacksonville	FL	$984	-0.20%	4.10%
Detroit	MI	$980	-0.20%	5.30%
San Antonio	TX	$979	-0.10%	1.90%
North Charleston	SC	$972	-0.60%	3.50%
Rochester	NY	$972	-0.30%	2.10%
Fresno	CA	$965	0.00%	5.00%
Arlington	TX	$959	0.00%	6.80%
Corpus Christi	TX	$957	0.90%	-0.40%
Lakeland	FL	$955	-0.90%	2.50%
Garland	TX	$955	-0.40%	4.50%
Knoxville	TN	$954	-0.10%	4.50%
Salem	OR	$952	-0.50%	6.50%
Grand Rapids	MI	$945	0.50%	2.90%
Cincinnati	OH	$940	0.50%	2.40%
Las Vegas	NV	$936	-0.10%	4.00%
Phoenix	AZ	$936	0.80%	5.80%
Waco	TX	$930	-0.40%	-2.00%
Birmingham	AL	$930	0.20%	5.40%
Kansas City	MO	$928	-0.40%	1.50%
North Las Vegas	NV	$926	-0.10%	2.10%
Bakersfield	CA	$925	0.30%	1.10%
Mesquite	TX	$922	-0.10%	3.80%
Chattanooga	TN	$915	-0.30%	2.50%
Lincoln	NE	$910	-0.20%	1.30%
Waterbury	CT	$905	-0.40%	2.40%
Mesa	AZ	$905	0.70%	5.40%
Newport News	VA	$901	-0.10%	1.30%
Spokane	WA	$898	0.30%	6.40%
Lubbock	TX	$897	-0.20%	-3.40%
Metairie	LA	$891	-0.60%	1.00%
Louisville	KY	$890	-0.20%	3.50%
Olathe	KS	$886	-0.20%	4.10%
Norman	OK	$883	0.20%	0.20%
St. Louis	MO	$880	-0.10%	2.60%
Lexington	KY	$869	-0.50%	1.50%
Omaha	NE	$867	-0.20%	2.10%
Des Moines	IA	$866	-0.10%	7.70%
Sterling Heights	MI	$865	0.00%	2.70%
South Bend	IN	$861	-0.50%	2.70%
Columbus	OH	$861	-0.30%	4.00%
Glendale	AZ	$856	0.80%	4.90%
Greensboro	NC	$839	-0.50%	3.30%
Albuquerque	NM	$839	0.20%	3.80%
Pasadena	TX	$833	0.20%	3.50%
Columbus	GA	$825	-0.50%	0.50%
Akron	OH	$821	0.00%	2.50%
Indianapolis	IN	$810	-0.20%	3.70%
Paradise	NV	$803	0.00%	1.10%
Broken Arrow	OK	$789	-0.30%	0.90%
Tucson	AZ	$789	0.30%	4.10%
Winston-Salem	NC	$787	-0.50%	4.90%
Las Cruces	NM	$779	0.60%	0.40%
Macon	GA	$774	0.30%	3.50%
Mobile	AL	$774	-0.60%	0.10%
Little Rock	AR	$766	-0.10%	-0.30%
Lansing	MI	$765	-0.30%	-0.60%
Augusta	GA	$762	-0.50%	1.50%
Warren	MI	$760	-0.70%	2.00%
Jackson	MS	$759	0.00%	3.30%
McAllen	TX	$758	-0.50%	-2.90%
Kansas City	KS	$755	-0.70%	0.10%
High Point	NC	$749	-1.30%	1.60%
Memphis	TN	$749	0.10%	3.50%
El Paso	TX	$745	0.40%	0.10%
Dayton	OH	$726	-0.10%	2.80%
Amarillo	TX	$726	-0.80%	-0.40%
Oklahoma City	OK	$725	0.00%	-0.80%
Fort Wayne	IN	$719	-0.30%	2.60%
Independence	MO	$710	-0.40%	1.70%
Brownsville	TX	$694	0.40%	0.70%
Killeen	TX	$688	-0.10%	1.50%
Tulsa	OK	$672	-0.30%	-1.50%
Toledo	OH	$664	-0.40%	0.30%
Wichita	KS	$633	0.00%	1.30%

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Other cities on the list are Cambridge, MA; Oakland, CA; Daly City, CA; Irvine, CA; Stamford, CA; Pasadena, CA; Fremont, CA; Glendale, CA; Bellevue, WA; Carlsbad, CA; Arlington, VA; Hayward, CA; Seattle, WA; Costa Mesa, CA; Yonkers, NY and Edison, NJ.

About RentCafe and How We Compiled the Data

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 250 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.

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 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 124 markets across the US, as reported by Yardi Matrix.