Average U.S. monthly apartment rents held steady in February at $1,306, unchanged from the previous month, according to data compiled in the most recent survey of 124 markets by Yardi® Matrix.
While year-over-year rents in metros such as Sacramento and the Inland Empire in California rose during the month, most of the largest U.S. metros are reverting to flat or modest growth.
Such deceleration “is not unexpected or a sign of long-term weakness in the sector,” the report says, noting that household formation and occupancy rates are expected to remain robust in 2017. Looking ahead, the major unknown is how the economy will perform for the remainder of the year.
Joining Sacramento and the Inland Empire as year-over-year rent growth leaders in February were Seattle, Phoenix and Los Angeles.
View the full February report for additional detail from 124 major real estate markets.
Yardi Matrix is a business development tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily sector. Email This email address is being protected from spambots. You need JavaScript enabled to view it., call 480-663-1149 or visit www.yardimatrix.com to learn more.
$5 gain for the month reflects strong industry drivers
Average U.S. monthly apartment rents rallied in January, rising by $5 for the first overall gain in five months. Rents finished the month at $1,315, according to data compiled in the most recent survey of 124 markets by Yardi® Matrix. All details can be found in the Yardi Matrix Monthly for January.
Most of the nation’s rent gains were concentrated in high-population growth centers in the West and South, with Sacramento, Calif., Seattle, California’s Inland Empire, Phoenix and Nashville, Tenn., leading the way. Fourteen of the 15 metros that beat the national average in the survey of the top 30 markets are in these regions.
The strong start to the year “demonstrates the industry’s ongoing positive fundamental drivers, which aren’t expected to significantly change in 2017,” according to the report.
(Starting with the January survey, Yardi Matrix uses a revised methodology designed to produce more accurate averages on the national and metro levels. The overall rent and growth numbers changed correspondingly.)
Yardi Matrix is a business development tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily sector. Email This email address is being protected from spambots. You need JavaScript enabled to view it., call 480-663-1149 or visit www.yardimatrix.com to learn more.
A decline of $4, on average, in U.S. monthly rents in December failed to damper what was overall a strong year for rent growth in 2016.
The national monthly rent average for December was $1,210, according to data compiled from 123 markets surveyed by Yardi® Matrix. Rents grew 4% on a year-over-year basis in December.
While rents fell by $10 in the last four months of 2016, with some metros—including Houston; San Francisco; Boston; Austin, Texas; Miami and Denver—showing considerable flattening, normal seasonal factors accounted for some of the decline.
“As we have stressed in recent months, fundamentals remain sound and deceleration is not alarming,” the report states.
Leaders in year-over-year rent growth in December were Sacramento, Calif., California’s Inland Empire, Portland, Ore., Seattle and Las Vegas.
Looking ahead to 2017, the monthly Yardi Matrix report predicts continuing deceleration in the first half of the year followed by potential growth spurred by economic stimulus and an anticipated decline in new supply.
To see the full December report, click here.
