A $2 rise in average U.S. rents in February 2019 and year-over-year growth of 3.6%, the highest since late 2016, point to the multifamily industry’s continuing strength, according to a report from Yardi Matrix.
A February survey of 127 major U.S. real estate markets shows that demand, bolstered by a job market with low unemployment and accelerating wage growth, shows no signs of slowing.
Demand is most pronounced in metros with strong population gains and healthy job growth. Rents averaged $1,426 for the month.
The latest numbers “are evidence that the market has strength to perform well for a while, even if the economy or other commercial real estate segments slow down,” the report says. “Occupancy rates have ticked down slightly, but absorption has been no problem.”
February’s year-over-year rent growth leaders were Phoenix, Las Vegas, Sacramento, Calif., Atlanta, and California’s Inland Empire. View the full report.
U.S. multifamily rents rose $2 in February to $1,426 and year-over-year growth remained at 3.6%, as January was revised upward from 3.3% to 3.6%. Annual growth is the highest it has been since late 2016. Rent growth has steadily increased since bottoming at 2.2% in the fall of 2017. The consistent growth is a sign of the strength of the sector’s fundamentals and an indication that the cycle has a ways to run.
The desert Southwest continues to lead our rankings of top markets, as Phoenix (8.0%) and Las Vegas (7.9%) charge ahead. The gap between the top two markets and the rest of the nation is expanding, as well. Sacramento (5.1%) ranks third, with growth nearly 300 basis points less.
Related Stories
Multifamily Housing | May 1, 2018
Call for experts: We’re looking for designers and builders of bicycle storage facilities for multifamily
The editors of Multifamily Design+Construction magazine seek experts for a "how-to" article in the next issue.
Multifamily Housing | Apr 30, 2018
For housing costs, consider all occupancy costs - not just property taxes
It's inaccurate to focus on property taxes as a percentage of home value without acknowledging the actual cost of housing to which this percentage is applied.
Multifamily Housing | Apr 27, 2018
1912 publishing house becomes luxury residential condominiums
Gottesman Architecture and GSArch designed the renovated building.
Adaptive Reuse | Apr 26, 2018
Edison Lofts building is New Jersey’s largest non-waterfront adaptive reuse project
Minno & Wasko Architects & Planners designed the building.
Multifamily Housing | Apr 24, 2018
Adrian Smith + Gordon Gill Architecture designs 47-story condo tower in Miami
The tower will be located in Miami’s South Brickell neighborhood.
Multifamily Housing | Apr 23, 2018
Mass timber design for multifamily housing
The adaptability of urban development could be revolutionized through the inherent strength of mass timber construction.
Multifamily Housing | Apr 18, 2018
MAA, Greystar nation’s largest apartment owner, developer
With 5,651 apartment units started in 2017, Charleston, S.C.-based Greystar Real Estate Partners was the most active multifamily rental developer last year, according to the 2018 NMHC 50 report.
High-rise Construction | Apr 17, 2018
Developers reveal plans for 1,422-foot-tall skyscraper in Chicago
The tower would be the second tallest in the city.
Multifamily Housing | Apr 10, 2018
Luxury apartment community in southwest Charlotte provides 288 one- and two-bedroom units
Each of the six buildings will offer 28 corner units.
Multifamily Housing | Apr 10, 2018
Studio Gang’s 11 Hoyt brings over 480 apartments and 50,000-sf of amenity space to NYC
The tower is Tishman Speyer’s first ground up condominium project in New York City.