National rents just notched their slowest uptick in almost two years. According to data from property analytics firm CoreLogic, rents grew just 2.9% in June, down from a 3% rise last year. Month over month, RENTCafe shows rents rose just $3, hitting $1,469 nationally. But it’s not all good news for renters—especially those in the South. Rents in the region are still rising at breakneck speeds, with Phoenix seeing a 7.1% jump over the year. Nearby Tucson also saw a near-7% uptick. Other cities with significant jumps in rents were Las Vegas (5.8%); Orlando, Fla. (4.2%); and Charlotte, NC (3.7%). Though fast-rising rents are largely a Southern problem for now, it might not stay that way for long. Increasing rental demand and declining construction rates could soon spell faster rent hikes across the country. U.S. Census data shows that new renter households outweighed owner households last quarter, rising for the second time this year As Ralph McLaughlin, deputy chief economist at CoreLogic, explains, “This could indicate the start of another upward trend in renting, as this is the second consecutive quarter with increasing renter households and the first with more new renters than owners since the end of 2016.” Throw in that apartment construction is waning, and it could mean higher rents are in the future. Data from RENTCafe shows that just 299,000 new units are expected to enter the market this year—an 8.2% downslide from last year. Texas’ Dallas-Fort Worth metro is one of the few exceptions. The area is projected to see more than 22,000 new apartment units this year alone.
