Effective asking rents continued to fall in August, as U.S. apartment operators made sacrifices to maintain occupancy during the COVID-19 pandemic and recession. Rents across the U.S. were slashed by 1.4% year-over-year as of August. These were the deepest cuts the market has seen in over a decade. The last time rent cuts were this steep was back in March 2010, when the nation was climbing out of the previous recession. By early 2011, average rent growth topped 4% and, at its peak, progress was at 5.4% in 2015. By 2017, however, rent growth had eased a little, averaging at about 3% until April 2020, when the COVID-19 pandemic swept the nation, and the nation’s historic run on rent growth turned to price cuts. As of August, the expensive coastal Gateway markets are struggling more than others, while comparatively affordable areas are still maintaining some moderate growth.
