Apartment Rent Growth Continues to Slow in July
Rents increased in 87 of the nation’s 100 largest cities, however rents in 80 of those increased more slowly than in 2021.
Continuing a year-long trend, apartment rent growth was slower in July than in June, rising by 1.1%, a slightly slower rate of growth than the previous month, according to the August 2022 Apartment List National Rent Report.
Rents are, however, rising faster than in the years just prior to the pandemic, and for the first seven months are up 6.7 percent, nationally. In 2021 at this point, they were up 12 percent.
Rents increased in 87 of the nation’s 100 largest cities with Miami the speedy headliner over the past year, however rents in 80 of those increased more slowly than in 2021.
July, too, had several booming Sun Belt markets such as Phoenix and Las Vegas showing signs of cooling.
Vacancy rates held steady at 5 percent for the third consecutive month after rising the previous seven in a row. Call it “easing” from a low of 4.1 percent last fall, according to the report, though it’s a rate that remains well below the pre-pandemic norm.
Rent Growth Slowdown Reflects Seasonal Trend
“This month’s slowing rate of growth is consistent with the timing of seasonal trends that we have observed in the past, and it is likely that growth will cool further in the coming months, as the fall and winter tend to bring a slowdown in rental market activity,” according to Apartment List.
The most recent overall slowing can be partially attributable to rising mortgage rates, which are preventing potential first-time homebuyers from transitioning from renting to ownership.
The rapid growth in rent prices is a key contributor to overall inflation, which is currently rising at its fastest pace in 40 years as the country recorded its second consecutive month of negative GDP, it was reported Thursday.