National Apartment Rents Stabilize As Small Cities Boom

After years of torrid growth that has far outstripped wages, national apartment rents have finally plateaued, climbing a scant 2.5% YOY to $1,371 in March, according to RentCafe‘s latest monthly rent report.

Interestingly, the hottest rental markets (Brooklyn, for example), have seen rents retreat from record highs as they grapple with too much development at the high end of the housing market.

Meanwhile, mid-sized cities like Sacramento, Colorado Springs and Tampa have seen strong growth. But by far the strongest growth has been recorded in small cities like Midland, Texas (famously the home of George W Bush) and Yonkers, New York. Midland saw rents increase by a staggering 29% over the past 12 months, while nearby Odessa recorded a nearly 40% rent increase. Meanwhile, Reno, Tacoma and Orlando are in the top ten fastest growing rental markets.

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Still, despite a slight year-over-year drop, Manhattan still has the highest average rent in the country, followed by San Francisco, which saw rents rise 2.4% year-over-year.

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Of the 250 cities surveyed by RentCafe, Wichita, Kansas had the lowest average rent at $632 a month.

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