Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021, according to a new report from Yardi® Matrix. But given ongoing gains, Yardi® has revised its end-of-year projections upwards for most markets, the company said.
Here are the findings:
- Average month-over-month asking rents increased by 1.1% in May compared to the 1% month-over-month increase in April.
- Year-over-year asking rents decelerated, from 16% in April to 14% in May.
- Asking rents fell in only six markets: the gateway markets of Queens and Brooklyn, New York; small Southern markets Macon, Georgia, and Jackson, Mississippi; and tropical Honolulu, Hawaii and the Southwest Florida Coast.
- Conversely, 84 markets experienced greater than 1% month-over-month increase, and seven markets saw month-over-month growth that topped 2%: Charleston, Knoxville, the Bay Area-South Bay, Miami, the Urban Twin Cities, Wilmington, North Carolina, and Portland, Maine.
- Most markets received an increase to their end-of-year projections. The biggest increases were concentrated in markets that continue to outperform expectations, with Scranton-Wilkes-Barre, Wilmington, South Bend and Spokane all seeing a more than 5% increase for year-end 2022.
The takeaway:
“While we are seeing the usual seasonal increase leading into the summer months, 2022 does not look like a repeat of 2021 even though rent growth remains elevated,” state Matrix analysts.
To view the full report, click here.
