2019 Rent Growth

A year-over-year comparison of all asset classes across 30 major metros, provided monthly by Yardi Matrix.

Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix August 2019 Monthly Report

The rental market continues to be a positive performer, showcasing August rental growth of another $2 to $1,472. Despite the monthly increase, year-over-year growth declined to 3.3 percent, according to a Yardi Matrix survey of 127 markets. This, however, has not hindered market performance, as the long-term rent growth amount has been steady at more than 3 percent for the past 12 months and has surpassed the long-term average for the past two years. 

According to the report, occupancy rates have dropped 10 basis points year-over-year to 95.1 percent, as of July. Despite the decline, some individual metros are performing positively. Baltimore, for example, has an increased occupancy rate of 40 basis points to 95 percent year-over-year, helping push its rent growth up to 2.9 percent in August. This proves to be impressive for the metro because for several years it has been one of the poorest performing, with rent growth below 1 percent for most of 2018.

—Posted on Sep. 24, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix July 2019 Monthly Report

Multifamily rents for the year continued to rise in July, increasing $3 from last month to $1,469. Year-over-year rent growth rose to 3.4 percent, up 10 basis points from June, according to a Yardi Matrix survey of 127 markets. Annual rent growth has surpassed at least 3 percent for each of the past 13 months. 

Lifestyle rents increased 3.1 percent in July, showcasing the strongest growth for the segment since September 2016, according to the report. However, for the last six years, Renter-by-Necessity rents have grown faster, with nearly 2 million luxury units having been delivered, which is lowering rent growth for the high-end market. The gap between Lifestyle and Renter-by-Necessity has hit 50 basis points, the lowest since May 2012. 

—Posted on Aug. 22, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix June 2019 Monthly Report

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.

—Posted on July 24, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix May 2019 Monthly Report

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.

—Posted on June 21, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix April 2019 Monthly Report

Multifamily rent growth for the month of April continues to be consistent, with rents increasing by $5 to $1,436, according to a Yardi Matrix survey of 127 markets. However, year-over-year growth continues to decline, falling to 3 percent and dropping 30 basis points from March, which previously dropped 20 basis points to 3.2 percent. 

According to the report, absorption proves to be strong, with the national occupancy rate for stable properties at 94.8 percent, dropping only 10 basis points year-over-year.

—Posted on May 20, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix March 2019 Monthly Report

Multifamily rents were up 0.4 percent in the first quarter, showcasing consistent growth, although not as strong as previous years performance, according to a Yardi Matrix survey of 127 markets. Between 2014 to 2016, rents grew at least 0.8 percent in the first quarter. Compared to the previous month, rents increased by $4 in March to $1,430. However, on a year-over-year basis, rents dropped 20 basis points to 3.2 percent. 

According to the report, rent increases are “being dominated by secondary and tertiary markets producing a disproportionate share of economic and population growth,” as well as where rents are affordable enough that they can be raised without creating a burden on tenants. These markets offer increasing job and population growth, which is helping rents to continue to rise.

—Posted on Apr. 19, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix February 2019 Monthly Report

Multifamily rent growth has increased steadily since its lowest level of 2.2 percent in the fall of 2017. In February, rents increased by $2 to $1,426, with year-over-year growth steady at 3.6 percent. Compared to January’s 3.3 percent growth, rents rates gained 30 basis points. 

Rent growth accelerated through the first stage of recovery, according to a Yardi Matrix survey of 127 markets, peaking in 2016 in the mid-5 percent range. The housing supply gap led to heightened demand, while the new supply of both single and multifamily units dropped by more than half following the financial crisis. Rents continued to then drop for more than a year. At that time, rents seemed to remain in the 2 percent range, but actually rebounded. Demand continues to be strong, as the unemployment dipped below 4 percent and wage growth accelerated to more than 3 percent.

—Posted on Mar. 26, 2019


Year-over-year, all asset classes

National average includes 127 markets tracked by Matrix, not just the 30 metros listed above.
Source: Yardi Matrix January 2019 Monthly Report

The multifamily industry continues to perform strongly into 2019. Although rents did not increase from the $1,420 recorded in January, year-over-year growth has risen by 10 basis points to 3.3 percent, according to a Yardi Matrix survey of 127 markets. This matches the highest rent growth since November 2016. 

In terms of market performance, once again Las Vegas led the pack, with a rent growth of 7.9 percent. Following that was Phoenix at 6.5 percent and Atlanta with a rise of 5.9 percent. The West Coast markets continue to show strong performance, with five out of the top 10 markets being located in California—the Inland Empire, San Jose, Sacramento, Los Angeles and San Francisco. Despite California’s continued growth, rents increased by 2 percent or more in all but three of the top 30 metros last month.

—Posted on Feb. 15, 2019