Apartment rents are rising in some high-supply Sunbelt markets

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After several months of rent declines, some high-supply markets — namely Austin, Raleigh-Durham and Nashville — posted increases in May, fueled by strong absorption, according to Yardi Matrix. Austin, which was -5.8% year-over-year in May, posted month-over-month gains of 0.5% in the luxury segment, which Yardi calls the Lifestyle sector, and 0.4% in the renter category based on need. Raleigh-Durham, which was -2.4% year-over-year, posted growth of 0.9% in Lifestyle and 0.7% in RBN. Nashville, down 1.7% year-over-year, posted a 0.6% increase in Lifestyle and a 0.4% increase in RBN.

Overall, U.S. rents rose 0.3% month over month in May, with 26 metros posting modest gains, the report said. Rents increased by 0.3% month-on-month in the RBN segment and 0.4% in the Lifestyle segment

Overall, monthly rent increases were led by Denver and New York (both 0.9%) and Raleigh (0.8%). The few markets that showed modest declines are Phoenix, Twin Cities and Charlotte (all down 0.1%). Rent growth was positive in the majority of the top 30 metropolises of both Lifestyle and RBN. New York and Las Vegas recorded the largest increases in Lifestyle (both 1.0%), while Denver (0.9%) and Washington, DC (0.8%) led the way in RBN. Detroit rose 0.9% in Lifestyle and 0.7% in RBN.