The Average Rental Rate Shows Zero Growth for the First Time in 2015

As expected, the national rental market has finally cooled down. October was the first month in 2015 that the average monthly rent did not grow – at $1,166, it stayed approximately the same as last month. According to data from Yardi Matrix, this isn’t necessarily a sign that growth is weakening overall, but it may be a sign that the beginning of a growth new cycle is upon us.

Even with rent prices stagnating in October, the increase over last year at this time is 6.7%. When you consider that over the last eight years rent has gone up by 2.8% on average, it’s easy to see that these gains are significantly higher even with one month without growth. Rankings of the top 30 markets didn’t change much in October compared to the month before.

• Portland maintains its top spot with the most growth at 15.1% compared to this time last year. San Francisco, Seattle, and Denver also have double digit increases.
• Washington D.C. and Baltimore both had growth of less than 3%, which puts them near the bottom, and the Twin Cities and Richmond weren’t far behind with 3.4%.
• In some of the highest-flying metros, there are new signs that the rise in rents is starting to slow, though other markets (like Orlando, Dallas, Tampa, and Phoenix) are still rising steadily. Note that these markets do continue to grow. The report simply shows that the rent is not rising as quickly as it was in previous months.
• Growth has slowed more for high-end rent properties compared to lower-end ‘rent-by-necessity’ properties. This is due in part to the fact that the supply of high-end rental properties is on the rise in many markets, while working-class, affordable rentals are in increasing demand.
• Employment growth appears to continue to be closely tied to increases in rental averages. Rent growth remains strong in areas with strong job markets, including Atlanta, Jacksonville, Tampa, Miami, Orlando, and Phoenix. Dallas in particular has added jobs at a high rate of 3.6% compared to last year, and as a result has stayed in the top 10 rent growth markets both comparing the last three months and the last twelve months.

What Does Average Look Like? A Closer Look at Three Places You Can Rent for $1,166

For many Americans, these numbers don’t say much at all because what you can get for $1,166 in one city can be vastly different from what you get in another. Let’s take a look at what the average rent price will get a renter in Washington DC, Orlando, and Phoenix right now.

Washington DC

Rent isn’t rising as quickly in Washington DC as it is in other areas of the country, which means there are a lot of great deals to be found. The Summit at St. Martin’s has a 637 square-foot one-bedroom apartment for $1,095 in a pet-friendly community. Residents love the open floor plans, high quality finishes, and washer and dryer hookups in all units.

Orlando

With strong employment growth in Orlando, rent prices may be on the rise but there are still some quality rental apartments available for less than the national average. Millenia 700 is a brand new complex of luxury one- and two-bedroom apartments close to dining, entertainment, and everything Orlando has to offer. The prices for one-bedroom, one-bathroom apartments, covering 693 – 712 square feet, range from $1,095 to $1,257.

Phoenix

Not only is the job market robust in Phoenix, but cash can go a lot further. The Retreat Apartments are luxury in every sense of the word, from their spacious floor plans, to huge closets, to washers and dryers included in every unit – plus a swimming pool with a sundeck, a dog park, a clubhouse, and a 24-hour gym. And with all of that, a 1,200 square-foot three-bedroom, two-bathroom apartment costs just $1,005 – $1,214.

Are you looking for your next apartment? No matter your budget or your needs, we’ve got you covered with rental listings in cities all over the U.S.