WASHINGTON – U.S. home rents rose at a slower pace in August, a downshift that may reflect the rise of apartment construction in many major cities.
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Real estate data firm Zillow says that median rents rose a seasonally adjusted 3.8 percent from a year ago, off from the annual pace of 4.2 percent in July. Rental prices are still climbing at a faster pace than average earnings, increasing the financial burden of housing and potentially delaying the accumulation of savings to buy a home.
Rental increases tailed off in several metro areas, including in Los Angeles, Dallas, Philadelphia, Miami, Boston, San Francisco, Phoenix and Denver.
The falling pace of rental hikes comes as construction firms have broken ground on 12.7 percent more apartment buildings this year-to-date, according to the Commerce Department.