Apartment Rent Growth Back on Track in Top 30 Metros
Multifamily rents increased by 2.5%year-over-year in May, or almost exactly where rent growth was in March 2020 when the pandemic began spreading in the U.S., Yardi Matrix reported. Many metro areas have recovered and surpassed pre-pandemic rent growth numbers.
Rents grew $12 in May to $1,428, the largest one-month increase since Yardi Matrix began keeping track. The 0.8% month-over-month growth rate was the largest since June 2015. For the second month in a row, all top 30 metros had positive monthly rent growth and 90% had gains of 0.5% or more.
Even as all gateway markets are showing signs of recovery, some are recovering faster than others. In New York, rents increased by 3.4% on a month-over-month basis, well above all other top 30 metros.
The pandemic has driven demand for single-family rentals, and the SFR industry achieved 7.3% Y-O-Y rent growth in May, according to Yardi Matrix.