Only Five Apartment Markets Posted Rent Growth of 3% or Above
That is the fewest number since July 2020.
Only five of the nation’s 50 largest markets saw rents grow by 3% or greater for the year ending in May 2024, according to RealPage. “That was the fewest number of markets to record more than 3.0% rent growth since July 2020,” RealPage Chief Economist Carl Whitaker said.
These cities were Milwaukee, which rose 3.5%; Washington, DC at 3.3%; Kansas City at 3.3%; Cincinnati, at 3%; Greensboro at 3%.
Other cities that saw higher-than-normal rent growth include Cleveland at 2.9%; Newark at 2.7%; Chicago at 2.7%; Columbus at 2.6%; and Indianapolis at 2.6%.
“In the May readings, national rent growth ultimately weathered the supply siege as well,” Whitaker said, referring to the historic levels of supply entering the market. Still, the month marked the eighth-straight month in which annual effective asking rent change held between 0.1% and 0.3%, he said.
On a monthly basis, rents grew 0.5% in May, indicating a more normal seasonal performance, RealPage found. “May’s monthly rent growth marked the highest month-over-month rate of change since June 2023, and just 10 bps off the average May dating back to 2010.” He noted that the monthly rate of change outpaced the annual change largely due to deeper-than-usual rent cuts in the back half of 2023.
May also saw several cities experience negative rent growth, including markets that once saw double digit growth a few years ago. These include Austin at -7%; Jacksonville at -5.6%; Atlanta at -4.6%; San Antonio at -4.5%; Raleigh at -4.3%; Orlando at -3.9%; Phoenix at -3.2%; Charlotte at -3.1%; Tampa at -3.1%; Salt Lake City at -2.9%; and Dallas at -2.9%.