Research Center
August 2017
Commentary and data were supplied by a senior economist with the National Association of Home Builders (NAHB).
Rent Growth
U.S. monthly rents were flat in September, remaining at $1,354, yet they continue to decelerate on a year-over-year basis. Rents were up 2.2% nationwide in September, a 10-basis-point decline from August. After a strong first half, in which average rents grew by $33, they experienced a summer slowdown, increasing by only $1 in the third quarter.
Economy Watch: HQ2 Could Raise Rents in Some Apartment Markets
Smaller metros with lower wage growth or constrained housing stocks could see rents rise the most from the Amazon HQ2, notes a new Apartment List report.
Multifamily Rents Idle in Third Quarter
After a robust first half of the year where average rents grew by $33, there was a summer slowdown, with rents increasing by only $1 in the third quarter.
Charlotte Teems With Demand Drivers
Employment growth made the city an attractive target for new and expanding businesses, while supporting long-term multifamily demand. Following last year’s cycle high in deliveries, some 6,800 units are slated for completion in 2017.
Jacksonville Set for Economic Expansion
Multifamily remains a solid investment in the metro, where both employment and population are growing. In turn, these positive demographic changes are creating strong rental demand.
Inland Empire Shows Strength
Backed by a booming industrial market, the metro added 48,000 jobs in the 12 months ending in July. Apartment deliveries have been slow throughout the cycle, but that is likely to increase as demand continues to push rents higher.
Top 10 Portland Apartment Owners
Demand is on the rise in the city again, after three years of increased development. Rent growth continues to slow down and is now on par with the national average.
Kansas City’s Growth Story
Appealing workplaces, such as WeWork, are opening in the metro’s core submarkets, attracting young professionals to live-work-play environments. Job growth has exceeded the national average and helps maintain a robust demand for apartments.
Knoxville: No Longer in Nashville’s Shadow?
Both investors and developers are actively seeking opportunities in the market, which is expected to add new units at a rate that has not been met since 2011.