The largest renter hubs in the Sun Belt see the fastest growth in rents
Since last January, the hottest rental markets out of the 20 largest renter hubs in the U.S. were all located in the Sun Belt. Las Vegas apartments have seen the fastest rent growth in the top 20, having registered an 8.3% year-over-year increase over the past 12-month period. Sin City’s average rent rose to $1,048, up from $968 last January.
Phoenix’s average rent also saw a sharp increase of 7.6% y-o-y getting to $1,018, leaving the Arizona city in second place among the largest rental hubs in the country. Rent growth was also brisk in Los Angeles(6%), Jacksonville (5.9%), Atlanta (5.6%) and Austin (5.6%).
Permian Basin cities and Reno see fastest increases in average rents
Texas’ oil patch continues to fuel the fastest increases in rent nationwide, with a y-o-y increase of 17.7% in Midland, with an average rent of $1,564, and 14.2% in Odessa, where the average rent was $1,360. However, the pace of change in the Permian Basin does seem to be slowing, as the month-over-month increase was just 0.1% in Midland, and 0.2% in Odessa.
Renters in Reno, NV have experienced a similar dynamic, as rents have increased a whopping 10% y-o-y, while the month-over-month change was zero, suggesting that rents in Nevada’s second-largest-city are beginning to stabilize, at least for now. Reno’s average rent is now $1,239, up $113 since last January. This rapid growth is primarily due to the opening of Tesla’s Gigafactory, but large warehouse facilities for major firms ranging from an Amazon Fulfillment Center to Patagonia’s largest warehouse and service center have also contributed.