Sep
26

Yardi: Deceleration in Apartment Rents Coming This Fall

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yardi-rentsDecelerating rent growth and a jump in new rental units are coming this fall, says Yardi Matrix in its newest edition of U.S. Multifamily Outlook.

Despite two quarters of weak GDP, strong nationwide employment growth and low inflation rates have offset earlier economic concerns, the report notes. Yardi predicts gains in consumer spending and wage growth in the wake of the employment spike. “Worries that the recovery is on its last legs appear to have subsided,” the report says.

As of August, rents were up by 5.0% year over year across the country, a deceleration from the 6%-plus increases seen in 2015 but still a strong rate of growth. Yardi attributes this moderation to current wage increases and affordability issues and predicts greater rent deceleration in tech-centric metros, where large rent rate increases have been met with an increase in supply. Nationwide, 360,000 units are set to be delivered in 2016, a staggering 45% jump from 2015’s 249,000 new units.

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Categories : National News

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