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
| Feb 25, 2013
What end-users do (and don't) know about lighting technology (infographic)
The fifth annual SYLVANIA Socket Survey from OSRAM SYLVANIA finds that consumers are adjusting to new legislation and energy-efficient lighting options, with about half saying that they plan to switch to new lighting technologies.
| Feb 25, 2013
10 U.S. cities with the best urban forests
Charlotte, Denver, and Milwaukee are among 10 U.S. cities ranked recently by the conservation organization American Forests for having quality urban forest programs.
| Feb 21, 2013
Holl videos discuss design features of Chengdu ' Porosity Block' project
Architect Steven Holl has released two short films describing the development of Sliced Porosity Block in Chengdu, China.
| Feb 21, 2013
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia.
| Feb 20, 2013
Group of West Coast civil engineers developing building standards for tsunamis
A group of civil engineers from around the western U.S. is developing additions to the building code to address the threat of a tsunami.
| Feb 19, 2013
Luxury multifamily project under way in Atlanta; 215 residences planned
Hines Multifamily is building @1377, a luxury complex comprising 215 "urban-style residences" in Atlanta's Brookhaven neighborhood.
| Feb 18, 2013
Top 10 kitchen and bath design trends for 2013
Gray color schemes and transitional styles are among the top trends identified by more than 300 kitchen and bath design experts surveyed by the National Kitchen & Bath Association (NKBA).
| Feb 15, 2013
Could the student housing boom lead to a bubble?
Student housing has been one of the bright spots in the multifamily construction sector in recent years. But experts say there should be cause for concern for oversupply in the market.
| Feb 13, 2013
China plans new car-free city
A new urban development near Chengdu, China, will provide new housing for ~80,000 people, surrounded by green space.
| Feb 13, 2013
'Vegetative tower' apartments to revive NYC site
A Manhattan site formerly slated for development with a "tower of cubes"—a now-defunct project by Santiago Calatrava—will be revived with a 998-foot, 300,000-sf apartment building by Morali Architects.
