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Multifamily Rent Growth Springs into Gear
Multifamily rents in the U.S. performed strongly in April, rising $4 to $1,377, according to a survey of 121 markets by Yardi Matrix. Rents have increased by $10 in the last two months, a year-over-year gain of 2.4%, and is the market’s best performance since last spring.
The Santa Barbara, CA-based market intelligence firm points out the gain conforms to the multifamily market’s historically strong springtime performance, allaying concerns that surging deliveries from summer 2017 to February 2018 would dampen growth.
The healthy seasonal gains are a good sign that rent growth will remain resilient despite the headwinds faced by the market, particularly the peaking supply pipeline that has produced deceleration in some metros, according to the report.
Year-over-year rent growth leaders in April were Orlando, FL; Sacramento, CA; Las Vegas, NV; Tampa, FL and Phoenix, AZ. Meanwhile, some high-growth Western tech markets, such as San Jose, Seattle, Denver and San Francisco, where rent increases had decelerated the most between 2015 and the end of 2017, showed signs of perking up, with gains at above-trend levels in the latest three-month period.
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