Apartment rents witnessed the slowest annual rise in 17 months – a 3% increase in one year, reaching $1,474, according to a report from RENTCafé. The national average rent ended 2019 by slipping $1 compared to November, but the rent increases are still an average of $43 more compared with one year ago.
Here are the highlights for rent increases in Metro Phoenix:
• Phoenix ended the year charging $1,123 in average rent, after a $98 increase over one year, or 9.6%. This is the largest increase from among the US renter mega-hubs.
• Even higher increases were registered in Avondale, 11.2%, and Mesa, 9.9%. Avondale rents added $122 since the end of 2018, reaching $1,215. Meanwhile, Mesa average rents went up $99, to $1,094.
• Scottsdale charges the most expensive rents, $1,560 on average. They went up $91 compared to one year ago.
• The cheapest rents are in Glendale. Here the average reached $1,026, after adding $79 since the end of 2018.
• The slowest rent increase was registered in Goodyear, as rents here added $62 in one year, reaching $1,252.
Nationally, apartments were renting for $1,474 on average at the end of 2019, after the slowest annual rise in the past 17 months, 3%. Furthermore, rates displayed a slower yearly growth at the end of 2019 than in the previous year, when they went up by 3.2% according to apartment rent data from Yardi Matrix. In net dollars, renters are now paying $43 more per month for an apartment than they did in December 2018. By comparison, in the previous year, they saw a $45 rent hike compared to 2017.
The winddown comes after a decade of thriving apartment construction in which over 2.4M units were built across the nation. The U.S. economy remains strong while developers continue to deliver apartments in multiple locations. The apartment industry has made great strides since the great recession of 2008 and will remain a strong economic engine as we enter the new decade, says Doug Ressler, Manager of Business Intelligence at Yardi Matrix.
RENTCafé’s year-end rent report can be accessed here: https://www.rentcafe.com/blog/rental-market/apartment-rent-report/year-end-rent-report-2019/.