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
| Nov 7, 2014
Prefab helps Valparaiso student residence project meet an ambitious deadline
Few colleges or universities have embraced prefabrication more wholeheartedly than Valparaiso (Ind.) University. The Lutheran-based institution completed a $27 million residence hall this past summer in which the structural elements were all precast.
| Nov 3, 2014
Novel 'self-climbing' elevator operates during construction of high-rise buildings
The JumpLift system from KONE uses a mobile machine room that moves upward as the construction progresses, speeding construction of tall towers.
| Nov 3, 2014
Cairo's ultra-green mixed-use development will be topped with flowing solar canopy
The solar canopy will shade green rooftop terraces and sky villas atop the nine-story structure.
| Oct 31, 2014
Dubai plans world’s next tallest towers
Emaar Properties has unveiled plans for a new project containing two towers that will top the charts in height, making them the world’s tallest towers once completed.
| Oct 29, 2014
Better guidance for appraising green buildings is steadily emerging
The Appraisal Foundation is striving to improve appraisers’ understanding of green valuation.
| Oct 27, 2014
Studio Gang Architects designs residential tower with exoskeleton-like exterior for Miami
Jeanne Gang's design reinvents the Florida room with shaded, asymmetrical balconies.
| Oct 21, 2014
Passive House concept gains momentum in apartment design
Passive House, an ultra-efficient building standard that originated in Germany, has been used for single-family homes since its inception in 1990. Only recently has the concept made its way into the U.S. commercial buildings market.
| Oct 21, 2014
Perkins Eastman white paper explores state of the senior living industry in the Carolinas
Among the experts interviewed for the white paper, there was a general consensus that the model for continuing-care retirement communities is changing, driven by both the changing consumers and more prevalent global interest on the effects of aging.
| Oct 16, 2014
Perkins+Will white paper examines alternatives to flame retardant building materials
The white paper includes a list of 193 flame retardants, including 29 discovered in building and household products, 50 found in the indoor environment, and 33 in human blood, milk, and tissues.
| Oct 15, 2014
Harvard launches ‘design-centric’ center for green buildings and cities
The impetus behind Harvard's Center for Green Buildings and Cities is what the design school’s dean, Mohsen Mostafavi, describes as a “rapidly urbanizing global economy,” in which cities are building new structures “on a massive scale.”
