DataMarkets & Economy

LA rent rising high despite mediocre job growth

Yardi Matrix monthly survey reports US year-over-year rental price gains of 5.6 percent
  • Yardi Matrix's monthly survey report of 119 markets found rents rose in price by double digits for the third straight month, and $10 for the month of June.
  • Renter by necessity growth increased to above 8 percent in Los Angeles, while lifestyle renter growth hit around 7 percent.
  • By the end of 2016, rent growth in LA is expected to be at 7.1 percent.

U.S. apartment rents have increased for the third-straight month, according to Yardi Matrix's monthly survey of 119 markets. June rent rates increased by exactly $10, or 0.9 percent, to another all-time high of $1,213. Rents were up 2.7 percent in the second quarter of 2016 and climbed 5.6 percent on an annual basis. Year-to-date rents increased 4.2 percent, which is almost to the tipping point of the forecasted total 2016 growth. Although home prices increased pretty consistently, rental growth has slowed. Annually, rent growth dipped 30 basis points and is down 110 basis points from the most recent high reported in October. Prices have steadily risen since the start of the year. Yardi studied the Brexit in its June report as well, but the company doesn't believe the overseas shift will have much of an impact on the apartment market in the U.S. On an eight-year average, rent growth was reported by Yardi at 2.8 percent. The only market of the 119 studied that saw annu...