National Multifamily Report – May 2019

Multifamily rent growth in 2019 continues to be positive, increasing by $5 to $1,442 in May, a $14 bump over the last three months. Although the numbers continue in an upwards projection, year-over-year rent growth has performed at a decreased level. Compared to 2018, rents fell 50 basis points from April to 2.5 percent, according to a Yardi Matrix survey of 127 markets. 

Over the last six years, rent growth only failed to reach at least 2 percent year-to-date through May in 2017. Before that, May of 2011 was the last time where rents rose less than 1.2 percent, according to the report, which was due to the aftermath of the recession. Year-over-year rent growth dropped 80 basis points over two months and 110 basis points over three months. Renter by Necessity growth outpaced Lifestyle by 1.3 percent. Twenty-two metros passed the 2.5 percent national average in Renter by Necessity, whereas only eight topped the average growth in Lifestyle. 

In terms of market performance, Phoenix claimed the top spot for rent growth at 6.8 percent, compared to last month when it was tied with Las Vegas (6.6%). Both metros have increased occupancy rates of stabilized properties, according to Yardi Matrix, by 20 basis points over the past 12 months. Rounding out the top four are Sacramento with an increase of 4.1 percent and Atlanta jumping 3.9 percent. Occupancy levels of stabilized properties are down 30 basis points to 94.9 percent year-over-year through April. The report shows this might be a result of the growth in supply in some markets. 

To read the full report, visit the Yardi Matrix website.