Although rents only rose 13.2 percent in May compared to 14.1 percent a year ago, Odessa reported occupancy at 98.6 percent, also the highest in the country. With the growth of the gas and oil industry in the metro area, occupancy and demand are continuing to grow while unemployment hovers at 2.9 percent, according to the city’s economic development website.
Meanwhile, California cities showed strong rent increases in May securing half of the top 10 list.
Honolulu comes in third by pushing rents in a very tight market. The metro area was also recently named one of the least affordable cities for workforce renters. A worker would have to earn $35 an hour to afford an average two-bedroom apartment, according to the National Low Income Housing Coalition.
Top 10 Metros with Highest May Rent Growth
1.Odessa, Texas 13.2 percent
2. Napa, Calif. 12.3 percent
3. Honolulu, Hawaii 12 percent
4. Vallejo, Calif. 10.3 percent
5. Santa Rosa, Calif. 10.3 percent
6. Oakland, Calif. 10 percent
7. San Jose, Calif. 8.7 percent
8. Naples, Fla. 8.5 percent
9. Denver, Colo. 8.4 percent
10. North Port, Fla. 7.5 percent
Lindsay Machak is an Associate Editor for Multifamily Executive. Connect with her on Twitter @LMachak.