Bolstered by a positive economic environment, U.S. multifamily rents increased 3% year-over-year in January 2020.
Sixteen of the country’s top 30 markets posted year-over-year rent growth above the national average and none experienced a decline, a new report from Yardi® Matrix shows. The $1,463 rent was $1 below the average for December, but “stagnant or decelerating rents are common during the winter months and could continue” through the first quarter, the report says. The national economy’s resilience continues to sustain “strong and steady” multifamily fundamentals.
Phoenix and Las Vegas maintained their year-over-year rent growth leadership for the 16th consecutive month in January. Sacramento, Calif., California’s Inland Empire and Nashville, Tenn., rounded out the top five metros. Nashville and Charlotte, N.C., the No. 6 entry, have benefited from corporate relocations from higher-cost cities. Boston was the lone Northeastern market in the top 10.
Potential impediments to rent growth this year include new statewide rent control measures and increased local regulation of security deposits and resident acceptance criteria.
National supply deliveries figure to decline this year as “multifamily construction originations are at a five-year low and the increased cost of labor and materials continues to be an issue,” according to the report.
Get the latest in-depth data on employment, supply, occupancy and market rent growth trends in the Yardi Matrix multifamily national report for January 2020.
Related Stories
Market Data | Sep 17, 2018
ABC’s Construction Backlog Indicator hits a new high in second quarter of 2018
Backlog is up 12.2% from the first quarter and 14% compared to the same time last year.
Market Data | Sep 12, 2018
Construction material prices fall in August
Softwood lumber prices plummeted 9.6% in August yet are up 5% on a yearly basis (down from a 19.5% increase year-over-year in July).
Market Data | Sep 7, 2018
Safety risks in commercial construction industry exacerbated by workforce shortages
The report revealed 88% of contractors expect to feel at least a moderate impact from the workforce shortages in the next three years.
Market Data | Sep 5, 2018
Public nonresidential construction up in July
Private nonresidential spending fell 1% in July, while public nonresidential spending expanded 0.7%.
Market Data | Aug 30, 2018
Construction in ASEAN region to grow by over 6% annually over next five years
Although there are disparities in the pace of growth in construction output among the ASEAN member states, the region’s construction industry as a whole will grow by 6.1% on an annual average basis in the next five years.
Market Data | Aug 22, 2018
July architecture firm billings remain positive despite growth slowing
Architecture firms located in the South remain especially strong.
Market Data | Aug 15, 2018
National asking rents for office space rise again
The rise in rental rates marks the 21st consecutive quarterly increase.
Market Data | Aug 13, 2018
First Half 2018 commercial and multifamily construction starts show mixed performance across top metropolitan areas
Gains reported in five of the top ten markets.
Market Data | Aug 10, 2018
Construction material prices inch down in July
Nonresidential construction input prices increased fell 0.3% in July but are up 9.6% year over year.