After many reports of showing and even falling rent growth, analyses from two different sources about strengthening rent growth in two types of market sectors would seem like good news. And it is for many owners and operators, but in the short term. Over a longer period, the question is how long and how pervasively increases can be maintained.

CoStar data shows that monthly asking rents were up 18% from $1,435 at the end of 2019 to $1,691 in the first quarter of 2024. In some ways, rent growth has been slowing and even reversing, as has repeatedly reported. But when considering the compound annual growth rate (CAGR) of the Consumer Price Index of primary residence rents, since August 2021 has remained over 4%. It hit 11.1% in September 2022.

Rents have gone up, and as CoStar wrote, "Breaking out rent increases by the different price points reveals that residents of three-star apartments have absorbed the highest rent growth increases nationally, with an average increase of 21% over the past 17 quarters. Following that, renter households in more affordable properties, rated one and two stars, had the second-highest average rent increase at 17%."

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