U.S. Apartment-Rent Increases Slow Amid Construction Boom
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U.S. apartment rents increased in the first quarter at their slowest pace since late 2011 amid a wave of construction that will further test landlords’ ability to raise rates, Reis Inc. said.
Effective rents, or what tenants pay after any price breaks from owners, averaged $1,054 a month, up 0.5 percent from the fourth quarter, according to the property-research firm. Landlords’ asking rents also climbed 0.5 percent, to $1,102. It was the slowest growth for both measures in five quarters. Vacancies, which for the past year have been at the lowest level in a decade, dropped to 4.3 percent from 4.5 percent in the fourth quarter and 5 percent a year earlier.