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Yardi Matrix: Multifamily Muddling Along
In the words of research company Yardi Matrix, “U.S. multifamily rents in January (2018) continue to muddle along.” Specifically, according to the company’s metrics, rents increased by $1 to $1,362, which was the same level as July 2017. Annual rents increased 2.8%, a 20-basis-point (bps) increase from December 2017.
Yardi Matrix analysts pointed out that, following a two-year period of above-trend increases, rent growth in 2017 bounced between 2.4%-3%. “Rent growth tends to be flat through the winter, so the next few months should provide a clue as to the type of growth we’ll see in 2018,” analysts added. The 2018 forecast calls for rent growth to remain at around 2.5%.
Breaking the metros down:
- Sacramento reported 8.1% rent growth, though “rental increases are generally decelerating in the California capital,” Yardi analysts said.
- Las Vegas (5.9%), Orlando (5.6%) and Tampa (4.2%) are strengthening.
- Furthermore, approximately 300,000 units delivered in 2017, leading the national occupancy rate to fall by 50 bps to 95.2%.
For comments, questions or concerns, please contact Connect Multifamily editor Amy Sorter
