For August, U.S. multifamily rents stayed on course, adding $2 to July’s record high $1,412 nationwide average for the month, which represented a 3% year-over-year increase and was the seventh consecutive all-time high, according to a survey of 127 markets by Yardi® Matrix.
Highlights from the report
■ Buoyed by the strong economy and continued healthy demand, average U.S. multifamily rents rose $2 in August to $1,412, up 3.1% year-over-year and 10 basis points from July. Rents have grown steadily all year, and have reached record highs seven months in a row.
■ The sector’s performance is highlighted by rising occupancy rates in the face of robust supply growth. Since January, the occupancy rate for stabilized properties has increased 25 basis points—particularly impressive, considering that 2018 is on pace for a third straight year of some 300,000 new units.
■ Growth continues to be led by metros in the South and West, which occupy the top nine spots in the ranking.
■ 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.
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.”