• National average rent growth in July was 0.1 percent month-over-month and 2.6 percent year-over-year.

While home prices continue to rise at breakneck speed, average rent growth has slowed to 0.1 percent month-over-month and 2.6 percent year-over-year. In dollar amounts, that results in a meager $1 increase in rent from June to July.

Renters in New York and Texas experienced the largest decreases in monthly rent, a much-needed reprieve for some of the most expensive markets in the U.S.

According to RentCafe’s Yardi Matrix analytics, Manhattan rents decreased 3.1 percent year-over-year thanks to elevated levels of construction. In Manhattan, 7,023 more units are expected to be completed by the end of 2017, which has resulted in a $100 decrease in rent since January.

“The huge number of apartments entering the market benefits all renters — but especially those in the country’s more expensive areas,” said Yardi Matrix Senior Analyst Doug Ressler. “More apartments mean more choices — and, ultimately, more bargaining leverage for the renter.”

In Texas, the college towns of Lubbock and College Station have experienced 3.1 and 2.2 year-over-year decreases in rent, respectively. Both cities have aggressively ramped up construction with College Station increasing its apartment supply by 300 percent in less than one year.

Concurrently, rental prices California, Washington, Nevada and other parts of Texas are rising by 9 percent to 18.1 percent month-over-month. The city with the highest rental growth, Midland, Texas, can accredit it’s staggering 18.1 percent month-over-month growth to a strong job market and rock bottom unemployment rates.

Texas has added more than 319,000 jobs in 2017, and Midland currently has the second-lowest unemployment rate in the state at 3.5 percent. In the past seven years, the town has grown by 25,000 and rental construction simply hasn’t been able to keep up. But the growth in monthly rents has pushed residents toward homeownership — 67 percent of residents live in owner-occupied housing.

When it comes to affordability, cities in the South and Midwest continue to offer the lowest rents and costs of living. Wichita, Kan. has the lowest average monthly rent of $642 — $3,412 less than the highest average monthly rent of $4,054 in Manhattan.

To compile this report, RentCafé’s research team analyzed rent data across the 250 largest cities in the U.S. The report is exclusively based on apartment data related to buildings containing 50 or more units.

Rent data was provided by Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors.

See where your city ranks here.

Email Marian McPherson.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription