Monthly rent growth continues at a slower pace heading into the summer months. The June 2023 Apartment List National Rent Report witnessed a 0.5% climb during the month of May.
Year-over-year (YoY) growth at 0.9% is also at its slowest pace since March 2021, and it’s well off the 2.8% average YoY growth from 2018 and 2019. More of the country’s largest metros—48 cities are at negative YoY growth compared to 40 the previous month—are also witnessing a decline in rent growth.
During the past three years, Sun Belt markets like Tucson, Ariz., Miami and Tampa, Fla., have seen upward of 40% rent growth. Meanwhile, some not-so-warm cities like Cincinnati, Chicago and Louisville, Ky., have entered the picture as the fastest-growing metros in the past year at 5% and 4%, respectively. Eastern and Northeastern markets such as Boston, Providence, R.I., New York, Baltimore and Hartford, Conn., were among the fastest-growing metros during the past six months.
The same metros—San Francisco, San Jose, Calif., Minneapolis and Seattle—that struggled during the beginning of the pandemic continue to be among the slowest-growing cities, even with growth ranging from -2% to 12%. New Orleans at -2% in the past six months and -5% during the past 12 months is the slowest-growing metro. Phoenix is also a top three slowest metro during the past six months and year.