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Rent growth is slowing down in America’s most expensive addresses—but it’s as strong as ever in cheaper parts of town.
From April 2015 to April 2016 rent growth slowed in 90% of luxury neighborhoods in cities across the country, such as Atlanta, LA, NYC and S.F., according to data from Zillow, Bloomberg reports. But rent growth isn’t slowing in all neighborhoods of America’s cities—rent is jumping up undisturbed in poorer neighborhoods.
Luxury overbuilding is one reason rent growth is slowing down in the most expensive parts of town—there is so much high-end supply that rich renters are in a strong bargaining position. On top of that, from the demand side the market has risen so high over the last few years that it has hit the ceiling of what many wealthy renters are willing to pay. [Bloomberg]
