Yardi: Triad Rent Growth Slower Than Rest of Country

Yardi released a report indicating that apartment rents in the Triad increased from July ’15 to July ’16, but at slower pace than the national average. From the Greensboro News & Record:

The Yardi Matrix real estate research group reported Monday that Triad rents grew 3.8 percent in July compared with July 2015 — but that’s 1.2 percent lower than the national increase of 5 percent.

You can find the Yardi report (PDF) here. Here’s the intro:

U.S. multifamily rents inched up in August as the anticipated deceleration in growth started to take hold. Average U.S. rents increased by $3 in August, to their eighth consecutive monthly record of $1,220, according to Yardi Matrix’s monthly survey of 120 markets. On a year-over-year basis, rents were up 5.0%, which is down 50 basis points from the previous month, 110 basis points from April and 170 basis points from the recent peak last October.

Even though overall rent growth is cooling, fundamentals in most of the country remain strong. Occupancy rates have declined slightly, but they remain extremely high across the country. Job growth has slowed a bit, but continues at a pace of roughly two million per year, enough to keep apartment demand generally robust. The number of metros with outsize year-over-year rent gains has declined to a small number compared to the second half of 2015 and early 2016, but 18 of Yardi Matrix’s top 30 metros—60%—have seen solid growth of between 4 and 7% over the past year. Rent increases were led by Sacramento (11.9%), Seattle (9.3%) and the Inland Empire (9.2%).

The recent deceleration has been most pronounced in some technology-centric metros, which are coming back to earth due to the combination of waning demand and affordability issues in the face of growing supply.