Average Rents For U.S. Apartments Continue To Rise
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The average asking rent for U.S. apartments rose 1 percent in the first three months of 2008, the 24th consecutive quarterly gain, as the U.S. housing slump deterred people from buying homes, according to real estate research firm Reis Inc.
San Francisco had the most rapid rental growth at 11.1 percent, followed by San Jose, California, at 8.9 percent, New York at 8.8 percent and Seattle at 7.8 percent, New York-based Reis said today in a statement. The national vacancy rate rose 0.3 percentage point to 5.9 percent.
“People see a potential for prices to fall further, credit standards are tighter and they have to make a larger down payment,” Sam Chandan, chief economist at Reis, said in an interview. “People don’t feel confident timing the bottom of this thing.”
A deteriorating housing market beset by stricter loan terms and falling home prices is the “dominant driver” pushing people to rent apartments, Chandan said in a statement.
Source: Bloomberg News (04/05/2008)
Markets with Largest Percentage Rent Increases in the 12 Months Ending March 31
| Rank | Metro Market | 12-month Effective Rent Growth | Avg Rent |
| 1 | San Francisco | 11.50% | $1,801 |
| 2 | San Jose | 9.10% | $1,493 |
| 3 | New York | 9.00% | $2,790 |
| 4 | Seattle | 7.70% | $970 |
| 5 | Portland | 6.60% | $759 |
| 6 | Tacoma | 6.20% | $720 |
| 7 | Oakland-East Bay | 6.20% | $1,290 |
| 8 | Salt Lake City | 6.20% | $703 |
| 9 | Austin | 6.10% | $762 |
| 10 | Fairfield County, Conn. | 6.00% | $1,759 |
Markets with Smallest Percentage Rent Increases in the 12 Months Ending March 31
| Rank | Metro Market | 12-month Effective Rent Growth | Avg Rent |
| 70 | Las Vegas | 2.50% | $820 |
| 71 | Colorado Springs | 2.40% | $636 |
| 72 | Memphis | 2.20% | $624 |
| 73 | Chattanooga | 1.80% | $577 |
| 74 | Miami | 1.10% | $1,068 |
| 75 | Fort Lauderdale | .70% | $1,061 |
| 76 | Orlando | .50% | $821 |
| 77 | Tampa-St. Petersburg | .10% | $786 |
| 78 | Palm Beach | .10% | $1,055 |
| 79 | Jacksonville | -.10% | $752 |
| – | U.S. average | 4.80% | $984 |
Source: Reis, Inc.
*Based on 79 metropolitan areas