Index Investing News
Sunday, May 25, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Rents Reverse Course In February, Climbing For The First Time In 5 Months

by Index Investing News
March 6, 2023
in Property
Reading Time: 3 mins read
A A
0
Home Property
Share on FacebookShare on Twitter


On a year-over-year basis, rents are up modestly in Phoenix at 1%.

getty

Asking rents climbed by $6, or 0.3%, from January to February. That is the first monthly increase in rents in five months, since they last rose in September 2022, according to a recent survey. The 0.3% increase is only somewhat smaller than the typical February increase of 0.4%, averaged over data from 2016 to 2020, suggesting that the rental market remains somewhat cooler than normal.

Typical asking rents at the national level now stand at $1,976, which is 6.3% higher than one year ago, but 0.5% below the peak of $1,987 observed in September 2022. That annual growth rate is now down more than 10 percentage points from the peak growth rate observed one year ago this month: 17.0%, the record-high pace reached in February 2022.

Monthly changes: Winter comes to Florida

The steepest monthly declines in rent were observed this February in Cleveland (-1.0%), Jacksonville (-0.4%), Salt Lake City (-0.4%), Richmond (-0.3%), and Miami (-0.3%). That bucks the recent trend of mostly Western cities, plus New Orleans, having the largest rent drops earlier this winter. The substantial declines observed in two of Florida’s major metropolitan areas suggests some cooling may finally be arriving after years of very rapid rent growth.

Rents rose the most on a monthly basis in Hartford (1.3%), Sacramento (0.9%), Chicago (0.8%), New Orleans (0.6%) and Raleigh (0.6%). Many of these markets represent more affordable alternatives to competing cities, which may explain their recently climbing rents.

Western markets: Stepping off the roller coaster

Rents are very close to where they were last February in several inland West markets. On a year-over-year basis, rents are down 1.0% in Las Vegas, and only up modestly in Phoenix (1.0%), New Orleans (1.8%), Sacramento (2.5%), and Baltimore (2.9%). Annual rent growth didn’t fall much further in these markets from its pace in January.

The Western markets may be going through a lull after breakneck rent growth in 2021, when they saw a great deal of migration from expensive West Coast markets, followed by some mean reversion in rent growth in 2022. The cumulative effect, though, is that rents still stand much higher than pre-pandemic: 3-year growth in Phoenix, for instance, is still a staggering 37%.

Annual rent growth was highest in Cincinnati (9.4%), Indianapolis (9.1%), Louisville (8.9%), Kansas City (8.2%), and Boston (8.1%), reflecting the continued strength of demand in affordable, mid-sized Midwestern metropolitan areas, as well as a belated rebound for Boston. Miami’s absence from the top 5 MSAs for year-over-year rent growth is also notable, after growing the fastest earlier in the pandemic.

The most expensive major market is San Jose, where typical monthly rent is $3,189, followed by San Francisco ($3,084), New York ($3,084), San Diego ($2,959), and Boston ($2,958).

The beginning of a return to normal?

Not only did monthly rent growth in February break its 4-month streak in the red; it also climbed much closer to average pre-pandemic growth rates for that time of year. In each of the last 3 months, the monthly growth rate was 25 to 30 basis points lower than the pre-pandemic average: -0.41% in November (vs -0.11%); -0.26% in December (vs -0.01%); and -0.06% in January (vs 0.21%). But this February, growth was only 13 basis points below the 0.43% averaged at this time of year in the five years of data from 2016 to 2020.

If monthly rent growth for the rest of the year simply matches its pre-pandemic average growth rate in each month, the annual pace of growth would continue to decelerate, from February’s 6.3% to a low of 3.0% in September. A normal year of rent growth would be a major relief for renters after last year’s blistering pace of rent hikes. Year-over-year rent growth has already dropped precipitously, from a record-high of 17.0% in February of 2022.

The deceleration of annual asking rent growth in February only heightens the contrast with official inflation measures of rent growth, like the Consumer Price Index’s Rent of Primary Residence component, which grew 8.6% in January (the most recent month available at this time). Previous research suggests a 12-month lag between annual ZORI (Zillow Observed Rent Index) growth and annual CPI Rent growth, giving cause for hope that the year-over-year growth in the latter could begin to decelerate sometime soon.

One small data point consistent with such a slowdown was that the compounded annual growth rate of January’s monthly change in CPI Rent, 8.8%, was already down measurably from its pandemic-era peak of 11.1% in September of 2022. Given that monthly CPI Rent growth accelerated sharply last May and June, those months might be the most likely time this year to see a peak and turning point in year-over-year CPI Rent growth.



Source link

Tags: climbingFebruaryMonthsrentsreverseTime
ShareTweetShareShare
Previous Post

Lsr Celebrates 2022 Accomplishments

Next Post

ConsenSys zkEVM set for public testnet to deliver secure settlements on Ethereum By Cointelegraph

Related Posts

WA renters, landlords put together for brand new cap on lease hikes

WA renters, landlords put together for brand new cap on lease hikes

by Index Investing News
May 24, 2025
0

A monumental change hit Washington’s rental market this month, one within the works for years: caps on lease hikes.However what...

Magnificent Spanish Mediterranean Property within the Coronary heart of Denver

Magnificent Spanish Mediterranean Property within the Coronary heart of Denver

by Index Investing News
May 24, 2025
0

6 Ivy Lane, within the Outdated Crestmoor neighborhood, is well recognizable by its iconic blue tile roof and Spanish Mediterranean...

New-home gross sales climb practically 11%, however figures could also be ‘overestimated’

New-home gross sales climb practically 11%, however figures could also be ‘overestimated’

by Index Investing News
May 23, 2025
0

Gross sales of newly constructed single-family houses rose in April, pointing to continued purchaser engagement through the spring homebuying season,...

Goodyear to Promote A part of Chemical Enterprise for 0M

Goodyear to Promote A part of Chemical Enterprise for $650M

by Index Investing News
May 24, 2025
0

This 640,000-square-foot property situated in Akron, Ohio, serves as Goodyear’s headquarters. Picture courtesy of Goodyear Goodyear will promote nearly all...

Seattle’s solely homeless RV car parking zone makes approach for pickleball advanced

Seattle’s solely homeless RV car parking zone makes approach for pickleball advanced

by Index Investing News
May 23, 2025
0

The Seattle Instances’ Venture Homeless is supported by Campion Basis, Raikes Basis and Seattle Basis. The Seattle Instances maintains editorial...

Next Post
ConsenSys zkEVM set for public testnet to deliver secure settlements on Ethereum By Cointelegraph

ConsenSys zkEVM set for public testnet to deliver secure settlements on Ethereum By Cointelegraph

Kourtney Kardashian Rocks Blonde Hair Makeover In New Photos – Hollywood Life

Kourtney Kardashian Rocks Blonde Hair Makeover In New Photos – Hollywood Life

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Abbas condemns Israel for ‘hideous war massacre’ after Gaza hospital attack | Gaza News

Abbas condemns Israel for ‘hideous war massacre’ after Gaza hospital attack | Gaza News

October 18, 2023
2024 NFL Fantasy Soccer waiver wire: Jauan Jennings stars for San Francisco 49ers as Justin Fields wins once more | NFL Information

2024 NFL Fantasy Soccer waiver wire: Jauan Jennings stars for San Francisco 49ers as Justin Fields wins once more | NFL Information

September 24, 2024
Justin Steele impressed by support for Chicago Cubs at London Stadium

Justin Steele impressed by support for Chicago Cubs at London Stadium

June 24, 2023
Christine Lagarde Says Son Lost All in Crypto

Christine Lagarde Says Son Lost All in Crypto

November 24, 2023
Sahamati Expects Mortgage Disbursements Underneath Account Aggregator Framework To Contact Rs 74,500 Crore

Sahamati Expects Mortgage Disbursements Underneath Account Aggregator Framework To Contact Rs 74,500 Crore

March 13, 2025
‘Severance’, Plus 6 Issues to Watch on TV This Week

‘Severance’, Plus 6 Issues to Watch on TV This Week

January 13, 2025
Faculty Soccer’s Greatest Week 4 Disappointments: Oklahoma’s SEC Debut, the State of North Carolina

Faculty Soccer’s Greatest Week 4 Disappointments: Oklahoma’s SEC Debut, the State of North Carolina

September 23, 2024
What Makes Rookies Into Millionaires? Quitting What You Hate!

What Makes Rookies Into Millionaires? Quitting What You Hate!

September 10, 2022
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In