Rent Growth Breaks Records for June 2015 Led by West Coast and Sunbelt Markets

Fueled by high-demand from Millennials as well as prosperous job growth and favorable demographics, rent growth hit an all-time high during the month of June, according to the Matrix Monthly survey, Yardi’s new report focusing on apartment market trends.

Across the nation, the data points to record-breaking rental prices, averaging $1,150 for June 2015. This is up an impressive 6.3% year-over-year and a robust 1.3% month-over-month, the largest acceleration in rental prices since the last recession.

Rent Growth Sizzles in Pacific NW and Southern Markets

While rent growth remains strong nationwide, the Yardi survey found metro areas with the largest monthly increases in rent mostly concentrated in the Pacific Northwest, the South, as well as with higher-end lifestyle properties. The metros with most vigorous hikes in rental prices include Portland at 15.1%, followed by Denver at 12.4%, and San Francisco at 11.6% in the west, along with Jacksonville at 13.2% and Atlanta at 9% in the south.

What renters can get for $1,150 per month in some of the nation’s biggest markets

Atlanta

As one of the nation’s top metros for rent growth, Atlanta still includes some surprises, although you might have to compromise on space. Starting at $1,110, renters can live in a one-bedroom, one-bath apartment in Heights Armour, including about 632 square feet of living space. The rental community includes a convenient Midtown Atlanta location, complete with a swimming pool, sports club, plus a garden-soaking tub, upgraded finishes and appliances, private outdoor living space, and the comfort of a wood-burning fireplace.

Heights Armour Apartments in Atlanta via The Worthing Companies

Dallas

Your rental budget stretches a little farther in Dallas, where year-over-year rent growth is more in line with the national average. In this city, renters at Pavilions at Pebble View can stretch their dollar, with the average June rental price of $1,150 easily affording a two-bedroom, two-bath unit of around 1,000 square feet. Conveniently located in Lake Highlands, this complex features a playground, covered parking and a fitness center, along with private patios or balconies, high ceilings and plenty of storage possibilities.

Pavilions at Pebble View Apartments in Dallas via RentCafe

Chicago

In the Windy City, space-conscious renters can consider options like a studio apartment with one-bath for about $1,125 per month, right around the national average of rental prices. At the 529-41 W Wellington building, these homes command about 567 square feet of space. These apartments are within just a couple of blocks of Lincoln Park, and an easy walk of some of Chicago’s most desirable dining and shopping.

529-41 W Wellington Apartments in Chicago via RentCafe

Demand Remains Strong, Boosting Rent Expectations

Demand for apartments and rental homes is expected to stay strong as more Millennials squeeze the existing market by moving out of their family’s homes and into rental homes of their own. This, coupled with job growth and already record high rental prices is expected to push rent gains even higher in the second half of the 12-month reporting period, even leading to possible surges in some previously wavering markets.

Surprisingly, the 6-month numbers show that rent growth is already surpassing the extremely high predictions and expectations. Three of the hottest growth markets in the West have already seen rents up by at least 11%, while some other surveyed markets are up considerably more than what was forecast, including Jacksonville, the NC Triangle, and Orlando.