Despite continuing strong demand for apartments thanks to a bustling job market and more immigration, the booming supply over the past two years kept the average U.S. asking rent in January unchanged at $1,710. However, growth was most prominent in high-demand smaller markets like Boise and Colorado Springs as well as secondary cities like Austin, Denver, Nashville and Phoenix. Twelve of the top 30 metros saw negative rent growth in the Lifestyle (higher-end) sector, while 15 of the top 30 metros saw rents decline in the renter-by-necessity category. Meanwhile, rent is rising in areas like the Northeast and Midwest where demand isn’t going gangbusters but housing supply is lagging—proving the point that more supply will help relax rents.
