Midwest Markets Lead the U.S. for Apartment Rent Growth

For the first time, the Midwest region holds a notable lead in apartment rent growth performance. This is less about big price increases in the Midwest, however, and more about rent cuts in the rest of the U.S. driven by increased supply volumes. Effective asking rents in the Midwest were up 3.1% in the year-ending August, according to RealPage Market Analytics. While that showing was a bit behind the region’s decade average, it’s notably ahead of what is happening in most other regions nationwide. In fact, every other region is logging annual rent cuts, except the East Coast, where growth is more moderate – and more apart from regional norms – at 2.5%. This all comes down to increased apartment completion volumes. With most regions of the U.S. seeing increased deliveries weigh down on pricing power, the Midwest and East Coast have seen apartment markets swelling at a slower pace, giving operators some breathing room.

For more information on the state of the Midwest apartment region, including forecasts, watch the webcast Market Intelligence: Q3 Midwest Region Update.