SANTA BARBARA, Calif--(BUSINESS WIRE)--Delays in building new multifamily housing led to a flat August for U.S. rents. The national average rose $1 from July’s figure to $1,352, according to a survey of 121 markets by Yardi Matrix. Rents were up 2.4% during the month on a year-over-year basis, data taken from the Yardi Matrix report.
The gain in August, while modest, kept alive the streak of rent increases for every month in 2017.
The decelerated rent growth came amid signs that the delivery of new housing units is slowing. While the economy is holding up well and multifamily demand remains strong, fewer than 10,000 new units were delivered in July and August, compared with the average monthly delivery of 14,500 in the first quarter of the year.
A critical shortage of construction workers is the principal reason for the slowdown. As a result, Yardi Matrix is “reducing our forecast for new deliveries in 2017 to 300,000, down from 360,000 we had expected.”
The top year-over-year rent gainers in August were Sacramento, Calif., Seattle, California’s Inland Empire, Phoenix and Dallas.
View the full August Yardi Matrix report for additional detail and insight into 121 major U.S. real estate markets.
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