‘Tis the season. It’s October, which means not only is it truly Fall, but it’s also time for our multifamily update! Luckily, rent has calmed down since the spring and summer. Changes in October since last month are not significantly different, but here are some of the findings from our friends at ABODO.
Changes in Rent This Month
Like last month, Colorado Springs, Cleveland, and Santa Ana remains on this month’s list of greatest rent changes. Cleveland’s rent dropped by 4.6% since last month, but it still sits at the top spot for biggest change in rent at 9.9%. Meanwhile, the top three leading cities with the greatest decrease in rents include Newark, Norfolk, and Houston, at -6%, -5.9%, and -5.1%, respectively. Smaller cities also saw some decreases this month, such as St. Louis and Greensboro.
Highest Rents in the U.S.
Of course, San Francisco still sits on the throne of the highest rent in the U.S. We are all doubtful that this will change anytime soon (or maybe ever?). San Fran saw a very tiny increase in rent this month by only a measly $29. We can only guess that it will rise in the next year. The median price for a one-bedroom apartment is $3,269, while other one-bedrooms in metro areas are in the $1,600-$2,500 range. Following San Francisco in highest rents are New York City, San Jose, Boston, and D.C.
Short Supply Remains
The U.S. is still facing a housing shortage, and with many expected units to come, rents will probably continue to increase. Analysts have encouraged investors to implement creative financing and partnering with other firms to serve different segments. Research shows that the number of millennials entering the renting market will be over 2 million this year. That means that the demand for renting units will be at a constant high for years.
With only two months left of the year, we can only imagine how the state of multifamily will change. Will rents rise significantly again? That’s up in the air. Because certain cities have experienced a huge fall and decline this year, we can only play a guessing game. Rent overall was pretty high last month, and we’re seeing that there hasn’t been a huge change this month. We’ve already seen significant hikes this year, so we’ll have to wait and see if rent will remain steady.