Multifamily market sustains positive cycle

United States multifamily rents continued their impressive performance with a 3.4% year-over-year increase in July 2019, according to a new report from Yardi® Matrix.

Leading gainers included fast-growing Southwest and South metros Las Vegas, Phoenix, Charlotte and Raleigh, N.C., Atlanta and Nashville, Tenn. Rent growth was also strong in areas with concentrations of technology industries such as Boston, Seattle and Portland, Ore.

Even as multifamily fundamentals remain healthy almost everywhere, questions about the overall economy represent “potential for market volatility and slower growth,” the report says.

The average U.S. multifamily rent rose $3 in July, reaching $1,469. Sacramento, Calif., and Austin, Texas, joined Las Vegas, Phoenix and Charlotte as the month’s year-over-year growth leaders. Annual rent growth has topped 3% on a year-over-year basis for each of the past 13 months.

Read more in the Yardi Matrix multifamily national report for July 2019, which is available for download.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

Across the country, multifamily rents have skyrocketed. Year-over-year rents are up by double digits in nine of the top 30 markets, while national YoY rent growth is up 6.3%. Emerging from the pandemic, a perfect storm of migration, enhanced government stimulus and a hot housing market, among other factors, has enabled this extremely strong growth.