Rent growth is often at its highest point in the summer when more people move, leveling off in the fall and winter months. During the three months from June through August, rents rose at the lower end of the spectrum by 0.6 percent, but only by 0.3 percent for higher end properties.
Nationally, on a trailing 12 month basis, rents grew 5.6 percent, averaging the past 12 months as compared to the previous one-year period. During this period, higher end rents increased 5.8 percent outpacing the lower end rents which rose 5.5 percent.
Of all the major metro areas, apartment rent growth has been the strongest in Portland, Oregon at 12 percent, as growth is strongest in the Pacific Northwest and the Western markets. Behind Portland is Denver at 11.8 percent growth, San Francisco at 11.7 percent and Sacramento with an increase of 9.7 percent.
Yardi says, “Strong growth in employment and in-migration in most top markets continues to drive the rent engine. Some 60% of Yardi’s Top 30 metros have added 3% or more to their employment base in the 12 months ending in July, according to the Bureau of Labor Statistics.”
As rents increase, home prices rise and incomes rise but minimally, the affordability of manufactured homes becomes stronger and stronger. ##
(Photo credit: zimbio)
