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.
“These are the largest year-over-year and monthly increases in the history of our data set,” 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.
“Rent growth will not be able to continue at these levels indefinitely, but conditions for above-average growth are likely to persist for months,” 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 California’s 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:
• 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 $1,482—another 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 increased
• 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.
• Tampa, Phoenix (both 2.5%), Austin (2.4%), and Miami (2.3%) had the strongest MoM gains.
Related Stories
Reconstruction Awards | Nov 26, 2018
Yarn works: Neverending yarn
111-year-old mill becomes a mixed-income multifamily community.
Multifamily Housing | Nov 20, 2018
Designs unveiled for new residential tower in Honolulu
Studio Gang pays homage to sugarcane plants that were once prevalent in this area.
Multifamily Housing | Nov 14, 2018
BIG’s ‘wooden hillside’ residential building in Stockholm officially opens
The building spans 270,000 sf.
Market Data | Nov 14, 2018
A new Joint Center report finds aging Americans less prepared to afford housing
The study foresees a significant segment of seniors struggling to buy or rent on their own or with other people.
Multifamily Housing | Oct 26, 2018
Future proofing multifamily housing amenities for Generation Z
How does a multifamily property developer or operator make a smart investment in amenities that will give the project long-term value?
Multifamily Housing | Oct 23, 2018
A threesome of transit-oriented projects
Developers and their project teams are recognizing the value of walkability, convenient neighborhood services, and transit access, as these three TODs demonstrate.
Wood | Oct 19, 2018
Design revealed for mass-timber residential tower in Milwaukee
The developer is confident that the city will approve construction, which is scheduled to start next year.
Mixed-Use | Oct 15, 2018
35-story mixed-use tower will be tallest residential building in Long Beach
Studio One Eleven designed the tower.
Multifamily Housing | Oct 10, 2018
Affordable treasures
This year’s prestigious Gold Nugget Awards honor four projects that provide affordably priced housing for homeless families, seniors, and veterans.
Multifamily Housing | Oct 9, 2018
Breaking new ground: The New Home Company
The company, which is headquartered in Aliso Viejo, Calif. relies heavily on focus groups and market research to understand buyer preferences specific to each new community.