Santa Barbara, Calif.—Multifamily property owners enjoyed a banner year in 2015, with rents rising 6.4 percent. This represents the second highest increase over the last decade and 190 basis points more than the 4.5 percent recorded in 2014, according to the December 2015 edition of Matrix Monthly.
The top five metropolises for rent gains in 2015 were Portland, Ore., Sacramento, Calif., Seattle, San Francisco and Los Angeles.
Rents averaged $1,165 nationwide in December, $1 less than the all-time peak reached in September and October, which is consistent with normal seasonal flattening.
“Going forward, we expect rent growth to cool somewhat, but remain above the historical average. Nationwide, demand will remain robust as the large millennial generation reaches renter age and many form households, while empty-nest baby boomers increasingly trade down from oversized houses,” the report said.
Additional insight into employment, supply trends and other factors affecting the rental market is available in Matrix Monthly, a compilation of surveys of the 111 markets covered by Yardi® Matrix, a business development tool for brokers, sponsors, banks and equity sources that underwrite multifamily investment transactions.