These Major Western Cities Trail Average Multifamily Rents
Five out of a list of 14 major markets in the West have multifamily rents below the U.S. average, according to an analysis by RealPage.
Its data showed U.S. effective asking rents averaged $1,818 in January. Metropolitan areas in different geographic areas varied in median rent, with the most affordable metros being in the Midwest and South.
But there were exceptions on the lower end. Out of the 14 major metros markets in the West, five — almost 36% — fell in the most affordable areas, as did Pittsburgh in the Northeast.
What makes the lower-priced areas in the West notable is the region-wide monthly January rents of $2,209, which is 21.5% higher than the national average. However, that is boosted by areas like San Francisco and San Jose, with average rents topping $3,000 a month.
The metro with the lowest average rent in the West is Las Vegas, at $1,439. That is in the same virtual price neighborhood of Jacksonville ($1,436) and Austin ($1,460). During the last 10 years, the rent in Las Vegas has been $328 cheaper than the national average, though rates have made progress. In January 2015, they were $789.
Up until 2021, Phoenix also lagged behind national rents, with prices in January 2015 of $814. Since the pandemic, the area has seen a rental roller coaster. In 2021 and 2022, when so many metros saw significant rent growth, Phoenix came close to the U.S. average. Recently, rent cuts brought them down again to $1,504.
Salt Lake City had rents of $1,514, similar to Dallas. Like Phoenix, rents increased in 2021 and 2022 and then fell, though they are still ahead of the $888 a month in January 2015.
Portland for most of the last decade had been near, though slightly below, the U.S. average. Last in 2022, however, price cuts lowered average rent that, over time, lagged further behind the national average. Currently, rents there are $1,721, still below the national amount of $1,818, but well above the $1,083 that the city averaged in January 2015.
The last of the low five is Denver. Prices hit a top in July 2024 of $1,925. Then they began to drop again, with January 2025 rents at $1,801. It’s the first time in a decade that the area had rents below the U.S. average. In January 2015, rent in Denver was $1,221.
Source: GlobeSt/ALM