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Top News August 14, 2008, 3:05PM EST

Strong Rental Markets in a Weak Economy

(page 2 of 2)

2008 Apartment Rent Breakdown

See which metro areas have seen rents rise, fall, or flatten during the past year

The trend is easy to spot in this list of 88 large metro areas. Metros in -- or near -- strong job markets, such as Tacoma, San Francisco, Oklahoma City, and Seattle, are seeing apartment rents rise sharply. Rents are plummeting in some parts of Florida, Arizona, Nevada, New Jersey, Michigan and California where the economy is weakening and apartment vacancies are growing.

Nationally, rents rose 0.9% in the third quarter compared to the same period last year. The market overall is weakening, largely because of the toxic Florida and California markets. Rents were up 5.3% in the third quarter of 2006, as the housing boom was winding down. And the markets with the biggest rent drops (including Naples, Orlando, Sarasota and West Palm Beach in Florida and Phoenix in Arizona) had annual rent increases of more than 10% back in the third quarter of 2005.

The annual rent increases and drops reflect the change in effective rents in the third quarter of 2008 compared with the third quarter last year. The rents are calculated using a weighted average of all sizes of apartments and do not include single-family home rentals. The "effective rent" factors in any concessions offered by landlords.

Source: AXIOMetrics

 Effective Annual Growth Rate
(annual chg.)		Vacancy Rate
MSA Name by State State 3Q05 3Q06   3Q07   3Q08* Rank 3Q08 3Q05 3Q06 3Q07 3Q08* Rank 3Q08
Tacoma WA 7.8% -1.4% 13.1% 7.5% 1 4.8% 10.7% 2.6% 4.1% 1
Tulsa OK 3.1% 3.7% 3.2% 6.8% 2 7.1% 5.6% 5.1% 3.9% 2
Jackson MS 3.9% 2.3% 1.7% 6.3% 3 2.6% 4.7% 5.2% 8.3% 34
Oklahoma City OK 4.3% 5.3% 0.9% 6.2% 4 5.9% 5.7% 5.6% 7.7% 18
Salt Lake City UT 3.8% 7.5% 9.7% 5.9% 5 4.6% 2.9% 2.6% 3.7% 1
Salinas CA 2.4% 3.8% 3.2% 5.6% 6 4.4% 4.3% 2.8% 2.4% 1
Nassau-Suffolk NY 0.6% 4.3% -2.5% 5.2% 7 3.0% 2.1% 3.7% 3.1% 1
Corpus Christi TX 1.8% 3.5% 1.2% 4.5% 8 6.0% 2.7% 6.7% 7.5% 9
Seattle-Bellevue-Everett WA 6.7% 11.0% 7.9% 4.3% 9 4.7% 3.0% 3.6% 4.6% 2
Albuquerque NM 2.9% 2.6% 3.2% 4.0% 10 4.3% 3.2% 4.0% 4.3% 6
Hartford-West Hartford-East Hartford CT 5.0% 6.1% -1.8% 3.9% 11 3.3% 2.2% 2.9% 3.9% 5
San Diego-Carlsbad-San Marcos CA 5.1% 3.9% 2.8% 3.7% 12 3.1% 3.4% 3.6% 4.0% 11
Durham NC 3.0% 2.2% 2.2% 3.4% 13 8.1% 8.8% 8.2% 8.1% 32
Boulder CO 0.3% 3.1% 6.1% 3.4% 14 6.1% 2.6% 5.2% 3.8% 5
Denver-Aurora CO 0.8% 2.9% 6.2% 3.2% 15 5.9% 6.1% 5.4% 5.7% 25
Bethesda-Frederick-Gaithersburg MD 6.3% 5.7% 1.7% 3.2% 16 3.7% 3.9% 4.8% 3.9% 5
San Jose-Sunnyvale-Santa Clara CA 7.0% 11.0% 9.2% 3.0% 17 3.1% 2.3% 3.2% 3.6% 3
Oakland-Fremont-Hayward CA 3.7% 9.4% 4.3% 3.0% 18 3.4% 3.4% 3.3% 4.1% 15
San Francisco-San Mateo-Redwood City CA 7.0% 10.2% 7.3% 2.9% 19 2.7% 3.4% 2.5% 2.8% 1
San Antonio TX 0.1% 1.5% 2.1% 2.9% 20 6.2% 6.7% 7.1% 8.0% 7
Indianapolis IN 0.7% 1.3% 2.9% 2.6% 21 7.4% 7.3% 7.5% 7.3% 36
Colorado Springs CO -0.4% -1.7% 1.4% 2.4% 22 7.8% 9.0% 6.0% 7.2% 45
Cincinnati-Middletown OH-KY-IN 0.7% 2.7% 2.0% 2.4% 23 7.0% 6.0% 5.0% 5.0% 9
Little Rock-North Little Rock AR 1.1% 3.0% 2.1% 2.4% 24 4.9% 4.6% 6.0% 6.3% 47
Savannah GA -1.5% 9.8% -3.6% 2.3% 25 6.7% 2.8% 6.7% 4.3% 10
Washington-Arlington-Alexandria DC-VA-MD-WV 3.7% 5.6% 0.0% 2.2% 26 3.1% 3.5% 4.9% 4.5% 13
Portland-Vancouver-Beaverton OR-WA 2.4% 10.4% 6.0% 2.2% 27 4.2% 3.3% 4.1% 5.0% 6
Spartanburg SC 5.6% 3.7% 2.4% 2.2% 28 12.1% 10.0% 10.4% 9.3% 16
Boston-Cambridge-Quincy MA-NH 0.9% 2.0% 0.6% 2.1% 29 3.4% 3.9% 4.7% 3.8% 4
Augusta-Richmond County GA-SC 4.3% 2.7% 3.5% 2.0% 30 6.1% 8.2% 7.5% 5.8% 24
Houston-Baytown-Sugar Land TX 0.7% 5.8% 3.7% 1.9% 31 8.9% 7.2% 7.1% 8.6% 8
Minneapolis-Saint Paul-Bloomington MN-WI 1.5% 2.8% 1.4% 1.9% 32 5.4% 3.9% 4.7% 4.0% 5
New York-Wayne-White Plains NY-NJ 4.3% 6.3% 3.0% 1.9% 33 1.7% 2.5% 2.7% 4.3% 5
Fort Worth-Arlington TX 0.6% 4.3% 3.3% 1.8% 34 7.7% 6.8% 6.9% 7.4% 7
Dallas-Plano-Irving TX 1.2% 5.3% 2.7% 1.7% 35 7.2% 6.2% 6.7% 6.7% 7
Saint Louis MO-IL 0.6% 5.0% 1.1% 1.7% 36 7.5% 6.6% 6.6% 5.8% 16
Mobile AL 8.3% 8.7% 4.4% 1.6% 37 3.8% 1.1% 2.3% 3.3% 4
Columbus OH 1.3% 3.1% 3.0% 1.6% 38 7.5% 7.1% 6.0% 6.5% 14
Providence-New Bedford-Fall River RI-MA 3.5% 0.5% -2.9% 1.5% 39 4.0% 5.5% 4.9% 5.3% 6
Richmond VA 4.3% 4.2% 4.9% 1.4% 40 5.1% 4.4% 3.7% 5.0% 4
Nashville-Davidson--Murfreesboro TN 2.6% 3.8% 4.6% 1.3% 41 5.1% 4.6% 4.2% 5.8% 6
Lexington-Fayette KY 2.3% 0.0% 3.1% 1.3% 42 7.5% 7.0% 5.3% 7.5% 37
Cleveland-Elyria-Mentor OH 2.6% 2.3% 1.5% 1.3% 43 6.6% 6.1% 6.1% 6.4% 13
Montgomery AL 2.3% 2.9% -0.3% 1.3% 44 4.1% 6.1% 7.5% 10.6% 80
Greenville SC 4.0% 3.9% 5.0% 1.2% 45 7.5% 4.9% 5.1% 6.0% 7
Louisville KY-IN 0.6% 4.1% 3.3% 1.2% 46 7.0% 5.2% 6.0% 7.2% 34
Baltimore-Towson MD 4.1% 4.6% 2.7% 1.1% 47 4.1% 3.4% 4.3% 4.9% 13
Philadelphia PA 3.0% 2.5% 3.5% 1.0% 48 4.7% 3.5% 4.1% 4.7% 5
Birmingham-Hoover AL 2.9% 3.9% 0.3% 0.9% 49 4.0% 5.5% 6.2% 6.3% 47
Chicago-Naperville-Joliet IL 1.8% 5.7% 4.1% 0.9% 50 5.7% 3.5% 4.4% 5.5% 19
Columbia SC 3.4% 3.9% 1.7% 0.8% 51 6.0% 5.6% 7.5% 10.4% 18
Austin-Round Rock TX 2.5% 6.9% 5.6% 0.8% 52 6.1% 4.9% 5.0% 6.3% 6
Kansas City MO-KS 0.3% 3.7% 3.2% 0.8% 53 6.5% 5.3% 6.0% 6.1% 20
Sacramento--Arden-Arcade--Roseville CA 2.4% 4.7% 0.1% 0.6% 54 5.5% 4.0% 5.3% 5.5% 28
Virginia Beach-Norfolk-Newport News VA-NC 5.4% 3.5% 3.6% 0.5% 55 2.4% 3.9% 4.4% 4.2% 2
Lansing-East Lansing MI -0.3% 0.4% 0.7% 0.5% 56 6.4% 8.3% 4.4% 7.2% 31
Charleston-North Charleston SC 3.2% 5.0% 2.3% 0.4% 57 4.9% 3.4% 5.0% 7.5% 12
Santa Ana-Anaheim-Irvine CA 7.7% 5.3% 3.3% 0.4% 58 3.7% 3.6% 4.3% 4.6% 16
Wilmington DE-MD-NJ 4.1% 5.6% 2.1% 0.2% 59 5.6% 3.9% 5.2% 6.8% 39
Reno-Sparks NV 5.6% 3.4% 0.7% 0.0% 60 4.3% 3.5% 4.3% 5.7% 13
Chattanooga TN-GA 4.0% 3.5% 5.7% -0.1% 61 3.9% 3.5% 3.1% 8.0% 12
Memphis TN-MS-AR 2.0% 3.8% 2.8% -0.1% 62 6.8% 8.3% 7.9% 9.1% 14
Los Angeles-Long Beach-Glendale CA 7.3% 5.0% 3.2% -0.1% 63 2.8% 3.7% 4.8% 4.9% 25
Raleigh-Cary NC 0.7% 6.0% 4.4% -0.2% 64 6.3% 5.4% 4.7% 6.1% 19
Edison NJ 0.4% 5.4% 2.3% -0.2% 65 6.0% 2.8% 4.0% 3.4% 2
Warren-Farmington Hills-Troy MI 2.0% 0.5% -1.0% -0.3% 66 6.5% 7.4% 5.7% 6.1% 22
Charlotte-Gastonia-Concord NC-SC 2.8% 5.2% 4.5% -0.4% 67 5.7% 5.3% 5.4% 6.8% 25
Detroit-Livonia-Dearborn MI -1.0% -0.8% 0.9% -0.4% 68 7.7% 7.2% 7.2% 8.5% 40
Winston-Salem NC 2.2% 3.3% 4.1% -0.6% 69 6.5% 6.7% 5.8% 10.7% 35
Lake County-Kenosha County IL-WI 1.3% 3.0% 4.2% -0.7% 70 6.4% 3.4% 3.8% 5.7% 20
Las Vegas-Paradise NV 10.0% 4.7% -0.5% -0.8% 71 3.9% 4.3% 6.6% 7.0% 21
Atlanta-Sandy Springs-Marietta GA 3.3% 5.4% 1.6% -0.8% 72 6.5% 6.0% 6.6% 8.2% 49
Camden NJ 3.7% 4.7% 2.6% -1.5% 73 3.2% 3.6% 4.2% 5.8% 16
Miami-Miami Beach-Kendall FL 9.5% 4.2% -0.9% -1.5% 74 1.6% 3.0% 4.1% 5.5% 21
Greensboro-High Point NC -1.3% 3.2% 1.5% -1.6% 75 7.5% 6.8% 7.1% 10.8% 37
Oxnard-Thousand Oaks-Ventura CA 2.8% 8.5% -1.1% -1.8% 76 3.0% 3.3% 6.0% 5.2% 27
Tampa-Saint Petersburg-Clearwater FL 10.7% 8.7% -3.5% -1.9% 77 3.8% 3.8% 7.2% 7.7% 46
Riverside-San Bernardino-Ontario CA 5.1% 3.1% 0.6% -2.1% 78 4.5% 5.7% 6.2% 7.3% 55
West Palm Beach-Boca Raton-Boynton Beach FL 14.7% 3.6% -8.1% -2.3% 79 3.0% 6.8% 9.1% 9.5% 55
Tucson AZ 2.9% 8.5% 1.7% -2.4% 80 5.3% 4.3% 5.3% 7.7% 63
Fort Lauderdale-Pompano Beach-Deerfield Beach FL 11.0% 8.5% -2.2% -3.1% 81 2.1% 4.1% 4.9% 5.6% 22
Jacksonville FL 9.4% 3.9% -2.4% -3.3% 82 4.5% 6.2% 7.1% 8.9% 56
Phoenix-Mesa-Scottsdale AZ 10.3% 10.1% -2.7% -3.6% 83 4.6% 5.0% 8.2% 9.9% 78
Orlando FL 11.2% 8.3% -4.0% -4.0% 84 3.0% 4.8% 7.3% 8.5% 53
Sarasota-Bradenton-Venice FL 11.4% 4.0% -5.8% -5.9% 85 1.8% 5.8% 10.2% 12.3% 60
Palm Bay-Melbourne-Titusville FL 10.1% 5.2% -7.5% -7.1% 86 1.5% 4.4% 11.2% 13.5% 61
Cape Coral-Fort Myers FL 11.0% 6.1% -12.1% -9.1% 87 2.1% 6.5% 16.5% 17.7% 67
Naples-Marco Island FL 10.9% 7.4% -11.4% -9.4% 88 1.9% 5.6% 15.4% 16.7% 63
National   4.2% 5.3% 2.1% 0.9%   5.4% 5.1% 5.8% 6.4%  

Click here to see the twenty metro areas around the U.S. that seen the greatest increase and reduction in rents over the past year.

Business Exchange related topics:
Housing Market
Manhattan Real Estate
First Time Home Buying
Real Estate Speculators

Gopal writes about real estate for BusinessWeek.com in New York.

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