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Secondary Markets Leading Multifamily Rent Growth
Even in the midst of increasing multifamily supply, rent growth continues increasing, mainly buoyed by economic growth. And, according to Yardi Matrix’s July 2018 Multifamily National Report, secondary markets are helping to lead that charge “in the throes of strong late-cycle economic performance.”
The Yardi Matrix data noted that U.S. rents increased by $3 in July 2018 to an all-time high of $1,409. Year-over-year rent growth is 2.8%, down 10 basis points from June 2018. Topping the rent-growth chart were:
- Orlando (6.9%)
- Las Vegas (5.8%)
- Inland Empire (5.5%)
- Phoenix (4.9%)
“Strong demand fundamentals, led by growing employment and relative affordability, have propelled these markets to lead the nation,” the Yardi Matrix report said. In the meantime, slower-growing markets,such as San Antonio, Baltimore and Washington D.C., “are dealing with a mixture of heavy new supply and weaker demand,” the report noted.
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