Markets across the nation are entering ‘price-growth mode,’ leaving average rent for US apartments—in Jan. 2021—just 0.3% below the rates seen in early 2020. The nation’s average effective asking rent is $1,382 per month as reported by GlobeSt.com.
Be that as it may, the largest metro areas such as Los Angeles, San Francisco, San Jose, New York, Boston, Seattle, Washington DC, and Oakland are all experiencing double-digit declines. Early pandemic narratives indicated that people from the big cities started to move out to suburban areas once work-from-home culture became prevalent. This very well may be a direct result as areas such as Sacramento and San Bernardino/Riverside are seeing positive numbers.
“Among the biggest metros—those with at least 100,000 apartment units—the nation’s rent growth leaders are a couple of California markets. Effective asking rents are up 8.1% annually in the Riverside/San Bernardino area and up 8% in Sacramento.”
Essentially, only 119 of 150 of the nation’s largest metros are undergoing ‘price-growth mode,’ while the rest are experiencing massive year-over-year rent cuts.
On the bright side, occupancy rates for the nation as a whole were firmly at 95.4%, matching the early 2020 figure. “Occupancy is especially strong in properties with middle- and bottom-tier pricing. Lower occupancy registers in the luxurious top-end segment of the market, influenced by sluggish initial leasing at high-priced new deliveries in many parts of the country.”