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Every roller coaster ends up coming back to the resort, and when it comes to the last 18 months of apartment rental costs, it looks like a cycle of ups and downs is coming to an end.
And the impact is being felt in Arlington as well as across the country. The crazy increases in rental prices that have followed a – sometimes significant – decline in many urban areas of the country appear to be easing, and perhaps reverting to a more cyclical seasonality.
“The market remains extremely tight, but we haven’t seen any continuing signs of this pressure gradually starting to ease,” said the November 30 analysis of Apartment List, which tracks the 100 largest urban markets on a monthly basis.
Nationally, rents edged up 1% from the previous month, although in Arlington they were down 1.1% (to a median of $ 2,014 for one-bedroom and one-bedroom units). of $ 2,437 for two-bedroom units). Arlington was among 53 of 100 tracked urban areas to post month-over-month declines.
But it is simply a question of returning the accumulated gains.
“Since January, the national median rent has increased by 17.8%,” noted analysts Chris Salvati, Igor Popov, Rob Warnock and Lilla Szini. This compares to a more normal increase of around 2.6% from January to November.
With a few exceptions – noted below – most of the 100 monitored areas are now reporting higher median rental prices than they were at the start of the pandemic. In Arlington, despite the ups and downs, rents rose 2.1%. But there are a few exceptions: San Francisco remains down 14% since the start of the pandemic, Oakland 10%, Minneapolis 7%, San Jose 6%, District of Columbia 2%, and Fremont (California) 2%. Seattle remains essentially flat.
The largest increase is concentrated in three metropolitan areas – Tampa, Phoenix and Las Vegas – where median rental rates are up 30% or more. Topping the list this month is North Las Vegas, up 38% from a year ago, followed by Glendale, Arizona, up 37%.
Boise, who has led the pack in appreciation for most of the pandemic era, has seen rents drop in recent months, and in the latest numbers, his appreciation rate isn’t even in the top. 10.
The autumn-winter period has traditionally been characterized by a slowdown in demand for apartments, with prices stable or on the decline. This will likely be the case in the coming months as national vacancy rates, while still low by historic standards at 4.2%, have risen in the past three months.
For details, see the website at https://www.apartmentlist.com/research/national-rent-data.