Markets & EconomyRentals

Rent growth improves in struggling Northeast markets

Some gateway and primary cities in the region have experienced notable unit value growth

Average rent for apartments hit a record high of $1,136 in May in 61 U.S. markets surveyed by multifamily data provider Yardi Matrix, marking a 6.1 percent increase year over year and a 2.3 percent jump over the last three months and prompting Yardi Matrix to predict that the market could exceed annual growth of 4.9 percent during 2015. While the Northeast appears to be the worst region for May-to-May rent growth, some of its gateway and primary cities have experienced notable increases in overall unit values during the past three months. Spanning the past 12 months, rents grew by 2.1 percent in D.C.; however, during the last three months the nation’s capital ranked as the ninth-strongest metro for rent growth, sporting a 0.9 percent uptick. This improvement would indicate that significant absorption of new product is occurring. Rents in Philadelphia rose by less than 4 percent year to year, but increased by nearly 1 percent during the last 90 days -- ranking 11th in terms ...