Average apartment rents in the United States rose another $10 in June, marking the third straight month of double-digit gains, according to the latest apartment rent survey by Yardi Matrix.
According to the Yardi Matrix survey of 119 markets across the country, the average monthly apartment rent rose to another all-time high in June, this time hitting $1,213.
Overall, apartment rents were up 2.7 percent in the second quarter of the year and 5.6 percent when compared to the same time one year earlier. Year-to-date, average U.S. rents are up 4.2 percent.
Officials with Yardi don’t expect this trend of rising apartment rents to slow any time soon. U.S. residents are forming households at an increased rate today thanks in part to employment gains and a growing Millennial population. This means that the occupation rates of stabilized apartment properties are level or improving even as more apartment supply hits the market.
While cities on the East Coast and West Coast are expected to see the most rent growth for the rest of the year, Yardi Matrix does see solid rent gains for several Midwest cities. The company predicts that average rents will have grown 4.2 percent by year end in Nashville and Knoxville and 3.1 percent in Kansas City. Yardi Matrix expects rent growth of percent in Chicago and 1.5 percent in Minneapolis/St. Paul by the end of the year.