Multifamily's average asking rent for May rose $7 to $1,716, up $18 or 1% since January of this year, while year over year growth decelerated by 2.6%, down 70 basis points from the prior month and the lowest level in more than a year, according to Yardi Matrix.
It attributes the slowdown in rent increases to a number of metros having negative YOY growth in May: Las Vegas was down 2.8%, Phoenix 2.6%, Austin 1%, Seattle .9%, San Francisco, Atlanta and Sacramento all 0.4% and Orange County, Calif., 2%.
Slowing household formation, competition from new deliveries, lack of affordable units and less demand as companies lay off workers are also attributed to the weaker rent growth. Such factors all erode consumer confidence.
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