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Average apartment rents continued on their 2016 climb in June, hitting an all-time high of $1,213 per month – $10 more than May’s numbers. This marks the third straight month of double-digit gains, and the sixth month in a row rents have climbed consecutively, according to the latest Yardi Matrix monthly report.
Supported by high-demand from Millennials as well as vigorous job growth and favorable demographics, U.S. rental prices are up year-to-date by 4.2% – almost reaching Yardi Matrix’s projected increase for the entire year.
Fueled by Intense Demand, Sacramento Sees Rents Skyrocketing, Outranks LA, Portland in Rent Growth
Sacramento has seen the highest year-over-year jump with a rent increase of 11%. Sacto renters have seen their average rent growing by $119 to $1,224 in the past year. Studios go for $903, 1-bedrooms average $1,034, and two-bedrooms clock in at $1,259. The situation isn’t going to get better anytime soon, unless the city finds a way to bring more housing units to the market. Demand is likely to remain strong for urban living in the area as in-migration continues to boost population numbers. The employment picture is also getting better, but rental inventory lags behind. In terms of new construction, Sacramento is nowhere near other booming cities like San Francisco, Denver, and Chicago where the huge number of apartment completions is putting a damper on rent growth.
Here are some key takeaways from the June Yardi Matrix Monthly report:
- The biggest rent gains were seen on the West Coast, in cities like Seattle, Portland, Sacramento, Los Angeles, and San Diego.
- Southern markets like Atlanta, Orlando, and Tampa have also seen big rent increases, with all three making the top 20 metros for biggest rent hikes in June.
- One of the few exceptions to the ever-climbing rent race is Houston, where rents are finally slowing down. This is likely due to the weakening energy sector – the city’s main economic industry.
- In-demand cities like Washington D.C., Boston, and San Francisco saw smaller rent increases in June thanks to expanding rental inventory in the area.
- Occupancy rates have remained strong across the nation, with 96.1% of all units currently occupied. These rates tend to mirror employment growth and are highest in cities with lots of Millennials and new job opportunities, like San Francisco, Austin, and Dallas.
Though national rents average $1,213 a month, the type, style, and size of an apartment you can get for this amount varies city by city. Let’s take a look at what you can get in four of the nation’s hottest rental markets with this month’s average rent.
An improving economy and limited new supply are fueling rent spikes all across the metro. The good news, however, is that Sacramento is so diverse in both cultural and housing options that there’s something for everyone here. Plus, local rates are much lower than in San Francisco and Los Angeles from the get-go so you have every chance of finding a reasonably-priced place in a nice area to call home. Take the Wedgewood apartment community, for example! It’s conveniently located, just off of I-5 and minutes from downtown Sacramento, in Greenhaven; and it offers spacious apartments with energy efficient appliances, washers and dryers, and large closets. Rents start at $899 for 1-bedroom apartments while 2-bedrooms go for $1,199.
One of the nation’s costlier markets, inventory is limited in Portland if you’re looking for something priced at the national average. There are options, though, including downtown’s Westfal Apartments, where you can get a one-bedroom, one-bath apartment with 500 square feet for $1,050 per month. Situated in a beautiful historic building, units offer clawfoot tubs, high ceilings, wood floors and crown molding throughout.
Rent growth has actually slowed in Houston, so $1,213 can get you a lot in this bustling city. Turtle Pointe, for example, offers spacious, two-bedroom, two-bath apartments with more than 900 square feet for just $1,095 a month. Located in the Midwest part of town, the community is close to The Galleria Mall and boasts a fitness center, dog park, billiards room, three swimming pools, a sundeck and a basketball court.
Washington, D.C. also has loads of inventory for right around the national average. Southeast D.C.’s Matthews Memorial Terrace is a great example, offering a spacious 2-bedroom, 2-bath property for $1,088 a month. Located in the historic Anacostia Region, the community also offers underground parking, a playground, easy access to local bus and Metro routes, and more.
Check out these and more rental properties in your area at RentCafe.com!
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Amalia Otet is an online content developer and creative writer for RENTCafé. She loves all things real estate and strives to live beautifully, one green step at a time.
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