After six years above 3.0 percent, U.S. annualized rent growth slipped below that threshold in the first half of 2017. Nationally, rent growth now sits at 2.5 percent with most markets seeing a softening in rent growth. Minneapolis was the only market to buck this trend, seeing an increase in rent growth in the second quarter. Six markets across the West region continue to see strong rent growth at or above 5.0 percent in the second quarter, ranging from Phoenix (5.0 percent) to Sacramento (10.2 percent). Inland Empire, Salt Lake City, Seattle-Bellevue and Las Vegas round out the list. Conversely, effective rents in Houston, New York, San Francisco and Silicon Valley have each declined year-over-year. Despite softening rent growth, national vacancy rate remains stable at 5.1 percent only softening 10 basis points in the second quarter. With new deliveries expected to peak in the third quarter of this year, rent growth will likely continue to soften or remain flat and vacancy may soften further as new units hit the market.