Currently Reading

Economic rebound leads to record increase in multifamily asking rents

Multifamily Housing

Economic rebound leads to record increase in multifamily asking rents

Yardi Matrix in June saw a historic 6.3% year-over-year increase in apartment asking rents.

By Yardi Matrix | July 15, 2021
Economic rebound leads to record increase in multifamily asking rents Photo courtesy Pixabay
Economic rebound leads to record increase in multifamily asking rents Photo courtesy Pixabay

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.

Download the Matrix Multifamily National Report-June 2021

Related Stories

Cladding and Facade Systems | Oct 26, 2021

14 projects recognized by DOE for high-performance building envelope design

The inaugural class of DOE’s Better Buildings Building Envelope Campaign includes a medical office building that uses hybrid vacuum-insulated glass and a net-zero concrete-and-timber community center.

Multifamily Housing | Oct 22, 2021

A plan to solve California's housing crisis

A framework for workforce housing, environmental repair and economic balance.

Multifamily Housing | Oct 21, 2021

Chicago’s historic Lathrop public housing complex gets new life as mixed-income community

A revitalized New Deal–era public housing community in Chicago brings the Garden City movement of yesteryear into the 21st century.

Multifamily Housing | Oct 20, 2021

Sacramento’s first luxury high-rise rental residences announced

Southern Land Company is developing the project.

Multifamily Housing | Oct 14, 2021

27-story Bronx tower will include retail, 200 apartment units

CetraRuddy is designing the project.

Multifamily Housing | Oct 12, 2021

Affordable and sublime: 13 projects that represent the future of affordable housing

These projects prove that it’s possible to develop aesthetically pleasing, high-quality housing for low-income families, the homeless, and veterans.

Multifamily Housing | Oct 12, 2021

New multifamily community completes in Austin

Britt Design Group and Davies Collaborative designed the project.

Multifamily Housing | Oct 4, 2021

Spire brings 343 condos to downtown Seattle

The project is the closest high-rise building to the Space Needle.

More In Category

Magazine Subscription

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.


Follow BD+C: