Even as September marked the 38th consecutive month of annual declines nationwide in apartment rents, two market cohorts are seeing rent gains, Realtor.com reported. The AI boom is spiking demand in the Bay Area, while affordably priced metro areas are reversing their annual declines.
The strongest rent growth is in the Bay Area, where the AI boom is drawing young professionals seeking employment opportunities. Median asking rent in San Jose rose 6.0% year over year to a new high of $3,565, while San Francisco rent increased 4.8% to $3,057, just $48 below its summer 2022 pandemic peak.
Elsewhere in the U.S., markets such as St. Louis, Minneapolis, Virginia Beach, Riverside and Las Vegas have shifted from rent price declines to price gains as renters seek more affordable options outside nearby high-cost markets. Both St. Louis and Minneapolis have drawn renters from Chicago, according to Realtor.com.
Nationally, the median asking rent fell 0.4% year-over-year, the slowest annual decline in three years.
The post AI Boom, Affordability Drive Rent Gains in a Handful of Apartment Markets appeared first on Connect CRE.
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