The news was mixed nationwide for the apartment industry. From the Wall Street Journal:
The national vacancy rate climbed to 4.4% for the quarter from 4.2% a year earlier, according to data released by Reis Inc. Nonetheless, average rents across the U.S. increased 3% year-over-year in the second quarter to $1,335 a month. That was the smallest year-over-year increase since 2011.
Rents increased or remained flat in all but two of 79 metro areas. That is in contrast to the first quarter, when rents declined in 23 metro areas…
Landlords got a boost from weaker-than-expected deliveries of new apartment units, which might postpone more pain until later this year. Roughly 36,500 units were built during the second quarter, down almost 37% from a year earlier, as labor shortages took a toll on construction. Those units might end up hitting the market later this year, putting additional pressure on landlords.
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.
According to Axiometrics the Winston-Salem apartment market had the second lowest average rent in the country- $649 – in the month of March. The only market with lower average rent was Tucson, AZ ($633). Greensboro was the eighth lowest at $708 per month in March.
How do these rents compare to the top 10? Well at the very top you have New York at $3,251 and San Francisco at $2,659.