National Multifamily Report – June 2020
- Jul 15, 2020
Multifamily rents across the U.S. once again declined, this month dropping $2 to $1,457, according to a Yardi Matrix survey of 127 markets. This trend has continued for the last four months and year-over-year growth turned negative for the first time since 2010, falling to -0.4 percent. This marks a 70-basis-point drop from last month.
Average rent growth has declined by 0.8 percent in the first half of the year, showcasing a big difference from the 2.6 percent increase in the first half of 2019 and 1.2 percent increase in the second quarter of last year. The metros that suffered the most so far due to the pandemic include the West Coast and hub markets, shown by the sharp decline in San Jose of -4.6 percent and San Francisco of -3.8 percent. However, more affordable markets in California such as the Inland Empire and Sacramento have shown a positive performance, with rents rising 2.9 percent and 2.2 percent, respectively.
The year initially started off strong, with a 3.0 percent year-over-year rent growth in January and 2.9 percent in February. However, the crisis has shown that even the strongest of sectors have hit a rough patch, although there are still signs for a strong year ahead.
To read the full report, visit the Yardi Matrix website.