National Multifamily Report – June 2019
Average rents for the month jumped 3.3 percent year-over-year, 40 basis points more than they increased in May, according to a Yardi Matrix survey of 127 markets.
Following last month’s rental increase of $5, June’s rent growth continued to perform positively, showcasing a drastic increase of $12 to $1,465. Average rents rose by 2 percent in the second quarter of 2019, according to a Yardi Matrix survey of 127 markets. The report shows this favorable increase stems from several economic changes such as adding 172,000 jobs per month in 2019, “a solid growth considering the below-4 percent unemployment rate and the lateness of the economic cycle.”
Compared to the first half of 2019, which showed rents increasing by an average of 2.6 percent, year-over-year growth has increased 40 basis points from May, up 3.3 percent. The Census Bureau shows the number of renter households increased to its highest point during the first quarter, despite this performance being flat over the last two years. However, data shows that the number increased by more than 600,000 to 43.8 million.
When it came to metro performance, Las Vegas pushed its way to the front, with rents rising 8.4 percent. Following that was Phoenix, which was the top performer last month, increasing 8.1 percent, Sacramento (5.3%) and Austin (4.9%). The lowest-performing metros were Houston and Miami, with rent growths of 0.8 and 2.2 percent, respectively. These were the only cities to fall below 2.5 percent growth over the last year.
Similar to last month, the gap between Lifestyle rents and Renter by Necessity continue to contract, according to the report, showing growth of 2.9 and 3.8 percent, respectively. “After years of rapid rent growth, working-class renters are struggling to afford housing … while Lifestyle renters are able to pay higher rents despite vast new supply.”
To read the full report, visit the Yardi Matrix website.
