National Multifamily Report – April 2019
- May 17, 2019
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. In terms of economic growth, jobs continue to increase, producing around 200,000 new positions each month. Despite this, homeownership rates declined within the first quarter, dropping 60 basis points to 64.2 percent, brought upon by “the fourth quarter increase in mortgage rates.”
When it comes to metro performance, the Southwest region continues to outperform. Las Vegas again holds the top spot for rent growth, with Phoenix coming in tied at 7.3 percent. Both markets also led the ranking for asset class, according to the report. Phoenix Renter by Necessity increased 8 percent and Lifestyle went up by 6.3 percent. For Las Vegas, Lifestyle outperformed Renter by Necessity, growing 7.5 percent to 6.8 percent, respectively. Following that was Atlanta at 4.8 percent, Sacramento and the Inland Empire. Four of the top 10 performing metros were in the Southeast: Atlanta, Raleigh, Tampa and Charlotte. Although rents increased in all of the top 30 markets over the past year, according to Yardi Matrix, Houston was the only market with a gain of less than 1.4 percent, coming in at 0.6 percent.
To read the full report, visit the Yardi Matrix website.