US rental home prices rose at slower pace in September

WASHINGTON (AP) — The U.S. home rental market cooled in September. The slowdown hit major hubs of the energy industry such as Dallas, Houston and Tulsa, while moderating the boom coming in tech centers such as San Francisco, San Jose and Denver.

Real estate data firm Zillow said today that median rents rose a seasonally adjusted 3.7 percent from a year ago, down from the annual pace of 4.1 percent in August. The slowdown likely reflects the 14.8 percent surge in apartment construction during the first nine months of 2015, as increasing supplies have tempered price appreciation.

Research by the CoStar Group, a real estate marketer, found that 158,000 apartment units are being built this year, the highest level in more than three decades.

Still, rental prices continue to exceed wage growth.

Average hourly earnings have risen just 2.2 percent from a year ago, which means that housing is consuming a larger share of renters' incomes. Meager wage growth, rising rents and climbing home values has led the share of the country renting to climb to 36.6 percent, the highest level since 1967, according to the Commerce Department.

The median rent nationwide was $1,386 in September, up $50 a month from a year ago. But the data suggest that rental prices are easing somewhat, even in the hottest markets.