Renters are a big portion of most global mobility program volumes, so it’s wise for mobility managers to stay aware of what’s happening in their program's destination locations.
In a recent "Rent Café" blog post, there was a report that updated what was happening across the U.S. rental market. Some of the takeaways were:
- The average U.S. apartment rent decreased $9 and reached $1,306/ month according to Yardi Matrix.
- Luxury rents dropped a bit more, down to $1,554.
- California cities make up the biggest portion of the rent-growth list (eight of the top 20), and Stockton (up 12.3% to $1,017) with Sacramento (up 10.7% to $1,196) leading the way.
- San Francisco ($3,342/month), while still being one of the most expensive rental markets actually saw the biggest drop in rents (down 3.6% over the year).
Rent Café suggests: “It seems the recent increase in new construction is creating volatility in the apartment market, cooling down rents across the country." Nationally, “rents dropped by $9 in February, reaching $1,306 on average… while historically tight markets like San Francisco, Houston, Boston, San Jose and New York all saw average rents drop as well.”
Then, there are less populated cities that are seeing serious rent growth, like Mesa and Phoenix, Arizona; St. Paul, Minnesota; Nashville, Tennessee; and Fort Worth, Texas. Mesa actually saw a 6.6% increase year-over-year, while Fort Worth and St. Paul both came in at or over the $1,000 mark.
The International Monetary Fund offers an interesting comparison of the U.S. markets as a whole to other countries around the world.
Interestingly, the U.S. has seen housing prices rise faster than rents, although not dramatically more like in Turkey, New Zealand, and Canada. So, renting may still be a less expensive option for those in the U.S. initially arriving into expensive home-purchase markets, even though rental costs continue to rise in some markets.
Down, down, down go the rents. So they tell us. Last month, San Francisco had the slowest rent growth of any city in the U.S. — down 3.6 percent from a year earlier. According to a new study by the RentCafe website, San Jose (down 0.7 percent) and Oakland (down 0.5 percent) joined San Francisco on a list of the 10 cities with the slowest growing rents in the nation. “February’s numbers do spell an improving market on the horizon,” the study said. But then it splashed some cold water over its Bay Area findings: After all, rents remain astronomical with tenants paying an average of $3,342 in San Francisco (second highest in the U.S., after Manhattan’s $4,094); $2,548 in San Jose (sixth highest in the U.S.) and $2,394 in Oakland (seventh highest).