U.S. multifamily rents in August maintained the year’s torrid pace, according to the Yardi Matrix Multifamily National Report for August 2018. The $1,412 nationwide average for the month represented a 3% year-over-year increase and was the seventh consecutive all-time high, according to a survey of 127 markets.
U.S. multifamily rents have grown steadily throughout 2018, buoyed by the strong economy and continued healthy demand. The 25-basis-point increase in the occupancy rate of stabilized properties since January is “particularly impressive, considering that 2018 is on pace for a third straight year of some 300,000 new units,” the report notes, adding, “The multifamily market … shows no signs of being at the end of its cycle.”
August’s year-over-year rent growth leaders—Orlando, Fla.; Las Vegas; California’s Inland Empire; Phoenix; Tampa, Fla.—have populated most of this year’s monthly rankings. Metros in the South and West occupied the nine top spots in August.
Notable report highlights:
- Rents increased 3.1% nationwide in August, as the multifamily industry maintains consistent growth. Fundamentals appear to be in balance, as moderate rent appreciation, steady occupancy rates and new deliveries are supported by strong demand for apartments.
- Orlando (6.7%) once again led the top 30 metros on a year-over-year basis, while other popular retirement metros Las Vegas (5.7%), Phoenix (5.3%), and Tampa (4.8%), were also among the top performers. The Inland Empire (5.4%) ranked third overall, as Los Angeles residents continue to migrate eastward in search of more affordable housing.
- Renter By Necessity (3.5%) continues to outperform Lifestyle (2.4%) as new supply hinders rent growth of luxury units.
View the full Yardi Matrix Multifamily National Report for August 2018 for additional detail and insight into 127 major U.S. real estate markets.