Multifamily asking rents jumped an average of 6.3% year-over-year in June, the largest leap ever recorded by Yardi Matrix, a leading industry data tracker. The national average apartment rent increased $23 last month to $1,482, another record, and single-family home rents were up 11% year-over-year.
âThese are the largest year-over-year and monthly increases in the history of our data set,â said Jeff Adler, vice president of Yardi Matrix. Analysts point to increased household savings and government stimulus funding as factors that have kept the multifamily industry stable during the pandemic period, and now able to rebound as the economy improves.
The newly released data is an economic indicator of post-pandemic recovery across the U.S. The largest increases were documented in the lifestyle apartment sector. Renters are also now returning to many gateway markets that saw outbound migration for most of the last year. A supercharged housing market is also pricing out some potential buyers, leading residents to remain in apartments.
Â
Â
âRent growth will not be able to continue at these levels indefinitely, but conditions for above-average growth are likely to persist for months,â Adler said. The increases reflect growth in what landlords are asking for unleased apartments. Renters renewing leases may also be seeing increased rents, but at lower levels.
Migration is pushing up rents in Southwest and Southeast metros like Phoenix (17.0%), Tampa and Californiaâs Inland Empire (both 15.1%), Las Vegas (14.6%) and Atlanta (13.3%). These metros were lower cost compared to larger gateway metros.
Some takeaways from the Yardi Matrix report:Â
⢠Multifamily asking rents increased by 6.3% on a year-over-year basis in June, the largest YoY increase in the history of our data set. Out of our top 30 markets, 27 had positive YoY rent growth.
⢠Rents grew an astonishing $23 in June to $1,482âanother record-breaking increase. Lifestyle rents are growing at a faster pace than Renter-by-Necessity rents, something we have not seen since 2011 and another sign of a hot market.
⢠Phoenix (17.0%), Tampa and the Inland Empire (both 15.1%) topped the list with unprecedented year-over-year rent growth. Nine of the top 30 markets had double-digit YoY rent growth in June, driven by strong migration to these metros.
⢠Year-over-year Lifestyle rents (7.2%) grew faster than Renter-by-Necessity rents (5.8%) in June for the first time since 2011. Renters have benefited from increased government support, strong wage growth and increasedÂ
⢠Single-family (Built-to-Rent) rents grew even faster, at an 11% year-over-year pace
⢠Rents increased nationally by 1.6% in June on a month-over-month basis. For the third month in a row, all 30 metros had positive month-over-month rent growth.Â
⢠Tampa, Phoenix (both 2.5%), Austin (2.4%), and Miami (2.3%) had the strongest MoM gains.
Related Stories
High-rise Construction | Apr 16, 2015
Construction begins on Seattle's Tibet-inspired Potala Tower
Construction on the 41-story Potala Tower in Seattle finally kicked off following a ground-breaking ceremony seven months ago.
Hotel Facilities | Apr 13, 2015
Figure-eight shaped hotel to open around PyeongChang 2018 Winter Olympics Facility
Just three miles away from the Olympic stadiums, the hotel will be a hub of its own.
Multifamily Housing | Apr 9, 2015
Multifamily development and transactions havenât taken a breather yet
Despite predictions about an impending softening in multifamily construction, builders and developers continue to expand their market reach and portfolios.Â
Multifamily Housing | Apr 8, 2015
Roof air leakage issues in multifamily buildings isnât just 'hot air' talk
Paladino's Robert Hayes talks about venting regulations in New York and how air leaks can cost residents upwards of $3,000 a year.
Mixed-Use | Apr 7, 2015
$100 billion 'city from scratch' taking shape in Saudi Arabia
The new King Abdullah Economic City was conceived to diversify the kingdom's oil-dependent economy by focusing more in its shipping industry.
High-rise Construction | Apr 6, 2015
Melbourne tower will light up depending on weather
The tower will be illuminated by 164-foot-tall beams of LED light based on weather updates from the Bureau of Meteorology.Â
Multifamily Housing | Apr 2, 2015
Historic Cabrini Green church to be demolished for tech-focused multifamily development
The infamous neighborhoodâs Saint Dominicâs Church âwas instrumental in taming a part of the city that grew up from the swamps as a lawless district of vice and poverty,â according to the Chicago Architecture blog.
Modular Building | Mar 31, 2015
Phoenix apartment complex will be made from recycled shipping containers
The eight-unit complex, called Containers on Grand, was inspired by the need for affordable and sustainable housing near the city's core.
Multifamily Housing | Mar 31, 2015
Plans for a new condo tower in New York create a âcommunal ecosystemâ for residents
The conceptual plans for a 700-foot-tall, 65-story condominium tower in New York City were unveiled in early March by its architect, Perkins+Will.
Multifamily Housing | Mar 27, 2015
Bathroom fixtures get a starchitect makeover by Bjarke Ingels
This Danish starchitect elevates the toilet paper holder (and other bathroom accessories).