The latest Yardi Matrix is reporting that the average U.S. monthly rent dropped $3 in October to $1,216. The drop, while slight, represented the biggest drop in three years. Year-over-year, average rents rose 4.4% nationwide. Yardi says the decline demonstrates a reversion to more “normal” rent growth, which they forecast earlier this year.
“The deceleration is far from being a sign that the sector is overheated. Fundamentals in most markets continue to be strong. Occupancies of stabilized properties are not far from cyclical highs, while the growing population coupled with strong job numbers is producing above-trend household formation that leads to demand for apartments.”
