In this month’s report, we explained a few key market trends:
🔑 The national median rent price continues to grow month-over-month, but is lower than this time last year.
🔑 Spring rent prices in Providence, RI are steadily increasing year-over-year.
🔑 Rents are continuing to fall annually in once-buzzy Southwestern states like Texas and Arizona.
While rent trends differ from region to region, here’s what you need to know about rent prices on a national level:
🔑 The national median asking rent price of one-bedroom apartments ($1,510) increased by 1% from March to April.
🔑 It’s important to note that despite monthly rent increases, the national median prices are still lower than they were this time last year — across apartment sizes. The cost of a one-bedroom apartment is down 4.1% YoY, followed by studio apartments (-3.1% YoY) and then two-bedrooms (-2.1% YoY). This is partially due to construction in high-growth markets, which offsets the steadily rising costs of more housing-strapped cities.
In this month’s report, we dove deep into the following trend:
🔑 While Boston is still the most expensive rental market in New England, its nearby commuter city has edged it out for YoY rent increases this year. When compared to this time last year, the median rent price for a one-bedroom apartment is up 2.86% in Providence and just 1.79% in Boston. Last month, the median price was +3.59% YoY compared to +1.79% YoY in Boston.
🔑 The increased volatility in Providence can be attributed to renter migration from Boston and other Massachusetts cities, where the cost of living tends to be higher, as well as increased investor activity and the prevalence of short-term rentals during the warmer months.
🔑 Arizona (-6.1% YoY) and Texas (-3.4% YoY) had two of the biggest YoY drops for one-bedroom median rent price in April.
🔑 It’s unsurprising given the rapid multifamily construction in recent years, largely concentrated in the buzzy cities of Phoenix, AZ and Austin, TX — though the Lone Star state is seeing significant drops across the board.
🔑 While this may look like a red flag for developers, it’s simply a trend correction after prices hit all-time highs during a period of high demand and low supply. Vacancy rates are expected to decrease over time, and the price swings we are seeing now are expected to soften.