Is the Hot Rental Market Cooling Off?

A new report indicates that rents in some of the nation’s hottest markets maybe cooling off.

ABODO, an apartment-search website, released its National Apartment Report for September, showing average monthly rents in Seattle, WA dropped by 13% from August, while rents for a 1-bedroom apartment in San Jose, CA dropped from $2,790 to $2,455, a 12% decline. Meanwhile, a 1-bedroom in San Francisco fell 6%, from $3,952 to $3,698, the seventh-largest decline. However, rents continued to strengthen in other markets such as Miami, FL, where the average rent for a 1-bedroom apartment rose from $1,599 to $1,739, a 9% jump. Overall, the average 1-bedroom rent nationwide rose from $932 in August to $940 in September, suggesting that rents continue to increase in rural and suburban markets, while they are cooling off in core metropolitan areas. (See List and Link to Entire Report Below)

The report included other interesting information
1)  49% of renters nationwide spend at least 30% of their income on rent.
2)  22% of renters nationwide spend at least 50% of their income on rent.
3)  The average rent nationwide for a 1-bedroom is $940, up from $932 last year.

Top 10 Rent Falls
1.   Seattle, WA:  -13%
2.  San Jose, CA:  -12%
3.  Los Angeles, CA:  -8%
4.  Boston, MA:  -7%
5.  Charlotte, NC:  -7%
6.  Long Beach, CA:  -7%
7.  San Francisco, CA:  -6%
8.  Chicago, IL:  -6%
9.  Baltimore, MD:  -6%
10.  Lexington, KY:  -6%

Top 10 Rent Jumps
1.  Miami, FL:  +9%
2.  Bakersfield, CA:  +9%
3.  Philadelphia, PA:  +7%
4.  Fresno, CA:  +6%
5.  Detroit, MI:  +6%
6.  Riverside, CA:  +6%
7.  Minneapolis, MN:  +4%
8.  Memphis, TN:  +3%
9.  St. Louis, MO:  +2%
10.  San Diego, CA:  +2%

National Apartment Report: September 2016