A $2 rise in average U.S. rents in February 2019 and year-over-year growth of 3.6%, the highest since late 2016, point to the multifamily industry’s continuing strength, according to a report from Yardi Matrix.
A February survey of 127 major U.S. real estate markets shows that demand, bolstered by a job market with low unemployment and accelerating wage growth, shows no signs of slowing.
Demand is most pronounced in metros with strong population gains and healthy job growth. Rents averaged $1,426 for the month.
The latest numbers “are evidence that the market has strength to perform well for a while, even if the economy or other commercial real estate segments slow down,” the report says. “Occupancy rates have ticked down slightly, but absorption has been no problem.”
February’s year-over-year rent growth leaders were Phoenix, Las Vegas, Sacramento, Calif., Atlanta, and California’s Inland Empire. View the full report.
U.S. multifamily rents rose $2 in February to $1,426 and year-over-year growth remained at 3.6%, as January was revised upward from 3.3% to 3.6%. Annual growth is the highest it has been since late 2016. Rent growth has steadily increased since bottoming at 2.2% in the fall of 2017. The consistent growth is a sign of the strength of the sector’s fundamentals and an indication that the cycle has a ways to run.
The desert Southwest continues to lead our rankings of top markets, as Phoenix (8.0%) and Las Vegas (7.9%) charge ahead. The gap between the top two markets and the rest of the nation is expanding, as well. Sacramento (5.1%) ranks third, with growth nearly 300 basis points less.
Related Stories
| Aug 11, 2010
RMJM unveils design details for $1B green development in Turkey
International architecture company RMJM today announced details of the $1 billion Varyap Meridian development it is designing in Istanbul’s new residential and business district, which will be one of the "greenest" projects in Turkey. The luxury 372,000-square-meter development on a site totalling 107,000 square meters will be located in the Atasehir district of Istanbul, which the Turkish government intends to transform into the country’s new financial district and business center.
| Aug 11, 2010
Urban Land Institute honors five 'outstanding' developments in Europe, Middle East, and Africa
Five outstanding developments have been selected as winners of the Urban Land Institute (ULI) 2009 Awards for Excellence: Europe, Middle East, and Africa (EMEA) competition. This year, the competition also included the announcement of two special award winners. The Awards for Excellence competition is widely regarded as the land use industry’s most prestigious recognition program.
| Aug 11, 2010
10 tips for mitigating influenza in buildings
Adopting simple, common-sense measures and proper maintenance protocols can help mitigate the spread of influenza in buildings. In addition, there are system upgrades that can be performed to further mitigate risks. Trane Commercial Systems offers 10 tips to consider during the cold and flu season.
| Aug 11, 2010
Brad Pitt’s foundation unveils 14 duplex designs for New Orleans’ Lower 9th Ward
Gehry Partners, William McDonough + Partners, and BNIM are among 14 architecture firms commissioned by Brad Pitt's Make It Right foundation to develop duplex housing concepts specifically for rebuilding the Lower 9th Ward in New Orleans. All 14 concepts were released yesterday.
| Aug 11, 2010
NAVFAC releases guidelines for sustainable reconstruction of Navy facilities
The guidelines provide specific guidance for installation commanders, assessment teams, estimators, programmers and building designers for identifying the sustainable opportunities, synergies, strategies, features and benefits for improving installations following a disaster instead of simply repairing or replacing them as they were prior to the disaster.
| Aug 11, 2010
MulvannyG2 Architecture wins “Best Mixed-use Development—Future” award
MulvannyG2 Architecture’s project, Aquapearl in Taipei, Taiwan, was honored by Cityscape Asia 2009 as the “Best Mixed-use Development -Future” on May 20, 2009 at the annual conference in Singapore.
| Aug 11, 2010
REDD and Corcoran Group Real Estate developing eco-friendly boutique condos in Brooklyn's Vinegar Hill
REDD and Corcoran Group Real Estate are developing 100 Gold, a 10-unit boutique condominium complex in Brooklyn's Vinegar Hill that consists of (6) one bedrooms, (2) duplex studios—one with a private yard, and (2) penthouses—duplex apartments with one bedroom and loft, and private terraces.
| Aug 11, 2010
AECOM, Arup, Gensler most active in commercial building design, according to BD+C's Giants 300 report
A ranking of the Top 100 Commercial Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Turner Building Cost Index dips nearly 4% in second quarter 2009
Turner Construction Company announced that the second quarter 2009 Turner Building Cost Index, which measures nonresidential building construction costs in the U.S., has decreased 3.35% from the first quarter 2009 and is 8.92% lower than its peak in the second quarter of 2008. The Turner Building Cost Index number for second quarter 2009 is 837.
