Apartment Rents Are Still Too Darn High

Rents are rising more slowly, but in many places they are still painfully expensive.

Young couple Moving in new home.Sitting on floor and relaxing after cleaning and unpacking.
(Image credit: SolisImages)

Relief is on the way for hard-pressed apartment renters after several years of tight supply and rent hikes. Job growth will moderate, easing demand. Builders have delivered new units, with many more in the pipeline. Factoring in rent concessions, rents rose 3.7% in the second quarter, compared with the second quarter of 2015. That’s down from the blistering 5%-plus rate of a year earlier and closer to the long-term U.S. average of 2.2%, according to Axiometrics, a provider of apartment-market research. Markets where annual rent increases have slowed most include the Bay Area, Denver, Houston, New York City and Philadelphia.

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Patricia Mertz Esswein
Contributing Writer, Kiplinger's Personal Finance
Esswein joined Kiplinger in May 1984 as director of special publications and managing editor of Kiplinger Books. In 2004, she began covering real estate for Kiplinger's Personal Finance, writing about the housing market, buying and selling a home, getting a mortgage, and home improvement. Prior to joining Kiplinger, Esswein wrote and edited for Empire Sports, a monthly magazine covering sports and recreation in upstate New York. She holds a BA degree from Gustavus Adolphus College, in St. Peter, Minn., and an MA in magazine journalism from the S.I. Newhouse School at Syracuse University.