Monthly rent prices increased just 0.3% in May to $1,316, the lowest annual growth rate in more than three years, according to a new blog post from Rent Café.
In fact, in six of the top 10 most expensive rental markets, average rents dropped year over year. For some, this cooling down is becoming a new trend, such as in San Francisco, which holds the top rent decrease for the fourth consecutive month.
“Renters have much reason to be optimistic,” Yardi Matrix Senior Analyst Doug Ressler said. “After a long period of incessant rent increases, rents are finally slowing down, even in some of the country’s higher-rent cities, like San Francisco and New York.”
“Even if demand for apartment living is still robust, rent growth will continue to taper off in the coming months, mainly prompted by the record number of new apartments entering the country’s tightest markets,” Ressler said.
Here are the top 10 most expensive rental markets, with the average monthly rent payment in each market and the percent change from last year.
10. San Jose, California: $2,579
Decreased 0.2% annually
9. Santa Clara, California: $2,650
Increased 0.4% annually
8. Sunnyvale, California: $2,680
Decreased 2% annually
7. Brooklyn, New York: $2,718
Remained flat from last year
6. Jersey City, New Jersey: $2,794
Increased 1.7% annually
5. Cambridge, Massachusetts: $2,947
Decreased 1.7% annually
4. San Mateo, California: $3,019
Remained flat from last year
3. Boston, Massachusetts: $3,170
Decreased 1.1% annually
2. San Francisco, California: $3,369
Decreased 3.3% annually
1. Manhattan, New York: $4,094
Decreased 2.9% annually
