Rent growth continues in 2022 but at a much slower pace than was seen through this point last year. According to the Apartment List August 2022 National Rent Report, the national index increased 1.1% during July. Year-over-year (YoY) rent growth is at 12.3%, well below the 18% peak seen earlier this year.
Rent increases are at 6.7% through the first seven months of 2022. The same period in 2021 saw rents jump 12%. However, pre-pandemic rates from January to July hovered in the 4% range between 2017 and 2019.
Rents have increased in 87 of the 100 largest U.S. cities, yet some markets have seen quite a cooldown since the start of 2022.
Rochester, N.Y., now holds the spot for the highest rent growth since March 2020 (45%) and during the past six months (14%). Providence, R.I., is just behind at 13% growth during the past six months, and the city has seen 35% growth since March 2020. Warmer markets like Tampa, Fla., Las Vegas, Phoenix and Miami are also among the cities with double-digit growth since March 2020.
Meanwhile, Minneapolis and Houston are among the slowest rent growth cities. California’s Bay Area is also seeing slower rent growth during the past 12 months and since March 2020. Despite large rent increases since March 2020, cities such as Phoenix and Las Vegas (2%) have started to have rent growth slow in the past six months.