Economy Watch: Top Rental Markets Still Seeing Price Increases

Despite talks of a pricing slowdown, the most expensive rental markets in the U.S. saw price increases in April, according to Zumper's latest report. San Francisco and New York City remain the top two rental markets in the country.
Source: Zumper National Rent Report: April 2017
Source: Zumper National Rent Report: April 2017

Changes in apartment asking rents in the top 100 U.S. rental markets were a mixed bag in April, according to the latest Zumper National Rent Report, with some markets seeing increases in rental rates, and others drops. Moreover, in the most expensive markets, pricing trends were mostly upwards, while middle-tier and bottom-tier markets saw more mixed results

It’s only a month’s worth of data, but as peak moving season approaches, these results could indicate landlords are beginning to price apartments to reflect the upcoming increased turnover, said Zumper CEO Anthemos Georgiades in the report.

Overall, the index showed one-bedroom unit rents increase 1.9 percent to a median of $1,164, while two-bedroom unit rents grew 1.8 percent to $1,377. Examples of median rents rising for the month in high-priced markets include San Francisco (up 1.5 percent to $3,330), San Jose (up 3.7 percent to $2,260) and Oakland (up 3.5 percent to $2,070).

In New York—the second most expensive market after San Francisco —rents were up for the month for both one and two bedrooms, increasing 0.3 percent and 2 percent, respectively, to $2,940 and $3,490. Seattle now ranks as the eighth most expensive city for renters, even though rents for one-bedroom units dipped 0.5 percent to $1,810 in April, and two-bedroom rents dipped 0.8 percent to $2,400.

The Zumper National Rent Report analyzes rental data from more than 1 million active listings across the United States. Data is aggregated on a monthly basis to calculate median asking rents for the top 100 metro areas by population.