Matrix

According to a Yardi Matrix survey of 127 markets, this spike represents a 3.1 percent year-over-year increase, up 10 basis points from July.

Year-over-year, rents have risen by 2.8 percent, reaching an all-time high of $1,409. Among the top 30 metros, Orlando once again came out ahead with the highest rental increase, at 6.9 percent.

Despite consistent supply growth and the lack of affordability in major metros, rents increased by $29 in quarter two, up 2.1 percent for the quarter and 2.6 percent for the first half. 

The year-over-year increase hit its lowest point over the last seven years, falling by 2 percent and down 70 basis points, according to Yardi Matrix’s latest survey of 121 markets.

Although down 20 basis points from March, rents have once again risen $4 in April, with a year-over-year increase of 2.4 percent.

Despite the average U.S. rental increase of $4, growth in the first quarter was weak compared to previous years, with gains averaging 1 percent in the first quarter of each of the last three years.

Although the year-over-year rate of 2.7 percent was close to the long-term average, last month's growth was the weakest seasonal gain in the past seven years.

Although growth tends to be flat throughout the winter months, U.S. average rent is up by 20 basis points from December and is forecast to hover around 2.5 percent.

Rents are forecasted to increase by 2 percent nationally over the next year, but growth will be moderate based on the increases in supply and the lack of affordable housing in high-cost metros.

Although rents were down 0.3 percent in the fourth quarter, December's year-over-year increase was up 20 basis points compared to November.

Employment gains, a moderate supply of new development and a high barrier to homeownership have bolstered strong multifamily demand in Orange County, pushing up rents and keeping occupancy over 96 percent.

The outlook for Houston’s multifamily sector will stay cloudy as the market continues to show signs of instability, mostly due to negative rent growth and decreasing occupancy in the upscale Lifestyle segment.