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a <br />erg i¢ y -MN` 5 t e ,+� ft <br />s)Jfi 6k <br />Increases in Rents Continue to Outstrip Inflation <br />in Non -Housing Goods <br />Annual Change (Percent) <br />7 — <br />6 <br />5 <br />4 <br />3 <br />2 <br />t <br />a <br />-2 <br />-3 <br />-4 <br />-5 <br />2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 <br />E I Prices for All Consumer Items Less Shelter <br />— Rents for Professionally Managed Apartments <br />w Rent Index for Primary Residence <br />Nates', Data are through 2017 3 foomPage annual rents are for professionally managed apartment pmpenles in <br />Classes A theater C. <br />Sources, JCHS lobulations of US Bureau of four Statislics, HealPago. Ina <br />new construction brought annualized rent gains for recently built <br />units down to just 1.1 percent in the third quarter (below the rate <br />of inflation in non -housing goods). Rent increases for high-rise <br />properties—which have the highest average rent of $1,890 per <br />month—were also modest at only 1.1 percent. Meanwhile, rents <br />for units in low-rise structures rose 3.1 percent, reflecting the <br />strong demand for lower-cost housing. <br />Rents for single-family homes (including condos) rose steadily for <br />seven years, with growth hitting a high of 4.4 percent in early 2016, <br />before slowing to 2.8 percent in mid -2017. Much of the slowdown <br />was at the high end (units renting for more than 25 percent above <br />median), where rent growth dropped tojust 1.9 percent. Meanwhile, <br />though, rents for low-end single-family units (renting for at least 25 <br />percent below median) climbed by a strong 4.4 percent. <br />THE GEOGRAPHY OF RENT GROWTH <br />Annual rent growth in some 70 of the 100 apartment mar- <br />kets tracked by RealPage slowed in the third quarter of 2017 <br />compared with a year earlier (Online Figure 4). Even so, nominal <br />increases in almost three-quarters (73) of these markets still <br />outpaced the 1.3 percent inflation in non -housing goods prices, <br />with nearly one in five reporting strong growth above 4.0 per - <br />The Largest Rent Hilces Have Occurred in Formerly Low -Cost Neighborhoods of Fast -Growing Metros <br />Annualized Change in Rent, 2012-2017 ( Parcel- 0 <br />4 <br />3 <br />2 <br />1 <br />0 <br />22 <br />Slow (Under 1.0) <br />Moderate (1.0-59) <br />Growth in Metro Area Population, 2612-2016 (Percent) <br />Fast 16.0 and Over) <br />Neighborhood Rent I'm a2612'103 Lowest ■Lower Middle 0Middle ■Upper Middle -L Highest <br />Largest 100 Metro Areas <br />Notes The top 10D metros are the largest by population as defined by the 2015 American Community Survey, but exclude Las Vegas end Tucson demanders limitations. Annualized growth in rent Is from Joly 2012 to July 2017, and <br />adjusted for inflation using the CH U retail Items Less Shelter. Hent quintiles are based on rents wifhin each more in 2012. Neighborhood rent grow@ is weighted by threshold of renter houselio ds le each ZIP code over total renters <br />In each metra. Slow hastd growth metres are in the bottom (top) quartile for population growth. Moderete-growth metros are arms middle two quartiles for population growth. <br />SourceJCHS tabulations at the Zillow Hent Index and US Census Bureau, 2015 American Community Samoa Year Estimates, <br />