DataMarkets & Economy

Long Island rent moderately growing, but NYC area trends vary

Yardi report finds rent growth cooling as inventory grows, most notably for lifestyle renters
by Staff Writer
Sep 30
  • U.S. rents were up 5 percent annually in August, slowing from the 6-plus percent increases reported for the majority of the year.
  • Central New Jersey saw 0.6 percent of its inventory consist of new completions in August, while 4.4 percent of new completions made up the total housing stock in Northern New Jersey.
  • Long Island's annual rent growth was reported at 3.7 percent in August and is forecasted to hit 3.8 percent by the end of the year.

The Yardi Matrix U.S. Multifamily Outlook for fall 2016 found that national rent growth has continued but slowed, while a couple bursts of job growth has helped propel the market forward. Covering 110 markets throughout the nation, the Yardi Matrix report has detailed ownership, construction and loan data from 65,000 multifamily properties. Although forecasters predicted a more active year for economic growth, 2016 rents increased strongly in August, at 5 percent year-over-year. However, trends are slowing, as growth surpassed 6 percent for the majority of last year. Construction was also strong, the report shows. In 2016 360,000 units are set to be delivered-- a 45 percent increase over the previous year. The majority of markets are reporting quick absorption of new housing stock, but some, such as Houston, are struggling to keep up the pace. This new stock could also be having an impact on the slowing of rent growth. Nationally, multifamily rents were down 50 basis points...

Article image credited to Felix Lipov / Shutterstock.com