Bolstered by a positive economic environment, U.S. multifamily rents increased 3% year-over-year in January 2020.
Sixteen of the country’s top 30 markets posted year-over-year rent growth above the national average and none experienced a decline, a new report from Yardi® Matrix shows. The $1,463 rent was $1 below the average for December, but “stagnant or decelerating rents are common during the winter months and could continue” through the first quarter, the report says. The national economy’s resilience continues to sustain “strong and steady” multifamily fundamentals.
Phoenix and Las Vegas maintained their year-over-year rent growth leadership for the 16th consecutive month in January. Sacramento, Calif., California’s Inland Empire and Nashville, Tenn., rounded out the top five metros. Nashville and Charlotte, N.C., the No. 6 entry, have benefited from corporate relocations from higher-cost cities. Boston was the lone Northeastern market in the top 10.
Potential impediments to rent growth this year include new statewide rent control measures and increased local regulation of security deposits and resident acceptance criteria.
National supply deliveries figure to decline this year as “multifamily construction originations are at a five-year low and the increased cost of labor and materials continues to be an issue,” according to the report.
Get the latest in-depth data on employment, supply, occupancy and market rent growth trends in the Yardi Matrix multifamily national report for January 2020.
Related Stories
Contractors | Feb 1, 2016
ABC: Tepid GDP growth a sign construction spending may sputter
Though the economy did not have a strong ending to 2015, the data does not suggest that nonresidential construction spending is set to decline.
Data Centers | Jan 28, 2016
Top 10 markets for data center construction
JLL’s latest outlook foresees a maturation in certain metros.
Market Data | Jan 20, 2016
Nonresidential building starts sag in 2015
CDM Research finds only a few positive signs among the leading sectors.
Market Data | Jan 20, 2016
Architecture Billings Index ends year on positive note
While volatility persists, architecture firms reported healthy performance for 2015.
Market Data | Jan 15, 2016
ABC: Construction material prices continue free fall in December
In December, construction material prices fell for the sixth consecutive month. Prices have declined 7.2% since peaking in August 2014.
Market Data | Jan 13, 2016
Morgan Stanley bucks gloom and doom, thinks U.S. economy has legs through 2020
Strong job growth and dwindling consumer debt give rise to hope.
Hotel Facilities | Jan 13, 2016
Hotel construction should remain strong through 2017
More than 100,000 rooms could be delivered this year alone.
Market Data | Jan 6, 2016
Census Bureau revises 10 years’ worth of construction spending figures
The largest revisions came in the last two years and were largely upward.
Market Data | Jan 5, 2016
Majority of AEC firms saw growth in 2015, remain optimistic for 2016: BD+C survey
By all indications, 2015 was another solid year for U.S. architecture, engineering, and construction firms.
Market Data | Jan 5, 2016
Nonresidential construction spending falters in November
Only 4 of 16 subsectors showed gains