As both Millennials and older, wealthier Americans continue to favor renting to homeownership, high-end luxury apartments have flooded the market, while very few affordable apartments have come online. Yardi's Jack Kern told Bisnow the divide in supply between Class-A and Class-B apartments will persist well into 2017.
The glut of luxury supply led to a deceleration in rent growth and eventually a decline in pricing in 2016.
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In a recent study dissecting last year's rent environment, Abodo found the cities with the largest average rent declines in one-bedroom apartments on a month-to-month basis in 2016:
Oakland, CA: -4.1%
Newark, NJ: -3.8%
Las Vegas, NV: -1.8%
Tulsa, OK: -1.5%
Seattle, WA: -1.4%
Corpus Christi, TX: -1.3%
Atlanta, GA: -0.9%
San Francisco, CA: -0.8%
Glendale, AZ: -0.7%
San Jose, CA: -0.6%
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Several cities that experienced the largest rent declines this past year are still among the most expensive markets to live in. Below are the cities that charge the highest rents for one-bedroom apartments as of January 2017, according to Abodo listings:
San Francisco, CA: $3,526
New York, NY: $2,935
San Jose, CA: $2,508
Boston, MA: $2,423
Los Angeles: CA, $2,194
Oakland, CA: $2,038
Washington, DC: $1,951
San Diego, CA: $1,727
Chicago, IL: $1,725
Santa Ana, CA: $1,684
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