Multifamily asking rents jumped an average of 6.3% year-over-year in June, the largest leap ever recorded by Yardi Matrix, a leading industry data tracker. The national average apartment rent increased $23 last month to $1,482, another record, and single-family home rents were up 11% year-over-year.
“These are the largest year-over-year and monthly increases in the history of our data set,” said Jeff Adler, vice president of Yardi Matrix. Analysts point to increased household savings and government stimulus funding as factors that have kept the multifamily industry stable during the pandemic period, and now able to rebound as the economy improves.
The newly released data is an economic indicator of post-pandemic recovery across the U.S. The largest increases were documented in the lifestyle apartment sector. Renters are also now returning to many gateway markets that saw outbound migration for most of the last year. A supercharged housing market is also pricing out some potential buyers, leading residents to remain in apartments.
“Rent growth will not be able to continue at these levels indefinitely, but conditions for above-average growth are likely to persist for months,” Adler said. The increases reflect growth in what landlords are asking for unleased apartments. Renters renewing leases may also be seeing increased rents, but at lower levels.
Migration is pushing up rents in Southwest and Southeast metros like Phoenix (17.0%), Tampa and California’s Inland Empire (both 15.1%), Las Vegas (14.6%) and Atlanta (13.3%). These metros were lower cost compared to larger gateway metros.
Some takeaways from the Yardi Matrix report:
• Multifamily asking rents increased by 6.3% on a year-over-year basis in June, the largest YoY increase in the history of our data set. Out of our top 30 markets, 27 had positive YoY rent growth.
• Rents grew an astonishing $23 in June to $1,482—another record-breaking increase. Lifestyle rents are growing at a faster pace than Renter-by-Necessity rents, something we have not seen since 2011 and another sign of a hot market.
• Phoenix (17.0%), Tampa and the Inland Empire (both 15.1%) topped the list with unprecedented year-over-year rent growth. Nine of the top 30 markets had double-digit YoY rent growth in June, driven by strong migration to these metros.
• Year-over-year Lifestyle rents (7.2%) grew faster than Renter-by-Necessity rents (5.8%) in June for the first time since 2011. Renters have benefited from increased government support, strong wage growth and increased
• Single-family (Built-to-Rent) rents grew even faster, at an 11% year-over-year pace
• Rents increased nationally by 1.6% in June on a month-over-month basis. For the third month in a row, all 30 metros had positive month-over-month rent growth.
• Tampa, Phoenix (both 2.5%), Austin (2.4%), and Miami (2.3%) had the strongest MoM gains.
Related Stories
| Nov 14, 2014
What college students want in their living spaces
In a recent workshop with 62 college students, architects from Little explored the changing habits and preferences of today's students, and how those changes affect their living spaces.
| Nov 11, 2014
Renzo Piano's third building at London Bridge Quarter approved, will be built adjacent to the Shard
Renzo Piano Building Workshop has been granted planning approval for its residential building at London Bridge Quarter—a 26-story apartment tower dubbed Feilden House.
| Nov 7, 2014
Arts college uses creative financing to build 493-bed student housing
Many states have cut back funding for higher education in recent years, and securing money for new housing has been tougher than ever for many colleges and universities. A recent residence hall project in Boston involving three colleges provides an inspiring example of how necessity can spawn invention in financing strategies.
| Nov 7, 2014
Prefab helps Valparaiso student residence project meet an ambitious deadline
Few colleges or universities have embraced prefabrication more wholeheartedly than Valparaiso (Ind.) University. The Lutheran-based institution completed a $27 million residence hall this past summer in which the structural elements were all precast.
| Nov 3, 2014
Novel 'self-climbing' elevator operates during construction of high-rise buildings
The JumpLift system from KONE uses a mobile machine room that moves upward as the construction progresses, speeding construction of tall towers.
| Nov 3, 2014
Cairo's ultra-green mixed-use development will be topped with flowing solar canopy
The solar canopy will shade green rooftop terraces and sky villas atop the nine-story structure.
| Oct 31, 2014
Dubai plans world’s next tallest towers
Emaar Properties has unveiled plans for a new project containing two towers that will top the charts in height, making them the world’s tallest towers once completed.
| Oct 29, 2014
Better guidance for appraising green buildings is steadily emerging
The Appraisal Foundation is striving to improve appraisers’ understanding of green valuation.
| Oct 27, 2014
Studio Gang Architects designs residential tower with exoskeleton-like exterior for Miami
Jeanne Gang's design reinvents the Florida room with shaded, asymmetrical balconies.
| Oct 21, 2014
Passive House concept gains momentum in apartment design
Passive House, an ultra-efficient building standard that originated in Germany, has been used for single-family homes since its inception in 1990. Only recently has the concept made its way into the U.S. commercial buildings market.
