A new national report from Yardi® Matrix portrays remarkable consistency in the U.S. multifamily industry. Rents increased by $5 in April 2019 as robust job creation continues to drive absorption of about 300,000 new units per year.
The average rent increase represents year-over-year and year-to-date growth of 3% and 0.8%, respectively. While these figures, based on a survey of 127 major U.S. real estate markets, represent lower growth than during that period in recent years, "market performance has been remarkably consistent over time and across geographic zones," the report says. It adds, "With the prime rent growth season just starting, it remains to be seen whether this year's gains will be stellar or merely average, but in any event there seems to be no reason to think the multifamily juggernaut is going to hit the pause button."
The average rent in April was $1,436. The year-over-year rent growth leaders in Yardi Matrix's top 30 markets remained unchanged from last month: Las Vegas, Phoenix and Atlanta were the top three metros, while Sacramento, Calif., traded places with the Golden State's Inland Empire for the fourth spot. Tech hub markets such as Raleigh and Charlotte, N.C., Austin, Texas, and Tampa, Fla., also showed strong growth.
Yardi Matrix offers the industry's most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types.