National Multifamily Report – October 2019

Phoenix has jumped ahead as the highest-performing metro with a 7.9 percent increase in rent growth.

After facing a drop last month, multifamily rent growth is back in the black, increasing $1 to an average of $1,476. Year-over-year rent growth remained at 3.2 percent and has been at least 3 percent for more than a year, according to a Yardi Matrix survey of 127 markets. 

When it comes to metro performance, Phoenix has jumped ahead of Las Vegas, with an increased rent growth of 7.9 percent. Las Vegas was in second place, down from its usual ranking with a 6.4 percent jump. Rounding out the top five were Raleigh (5.1 percent), Inland Empire (4.9 percent) and Charlotte and Sacramento tying with 4.8 percent.

Seattle, although only showing a rent growth of 2.9 percent, is showing to be the “poster child” for demand. The metro increased occupancy by 40 basis points to 95.8 percent over the last 12 months despite increasing its total stock by more than 5 percent. The demand will stay positive as long as “technology giants keep growing and Seattle remains popular among young knowledge workers,” stated the report. 

On the opposite end, metros with the biggest struggles were San Jose and Houston, tying for last place. According to the report, rent growth in San Jose “fell to 1.2 percent year-over-year… But fundamentals remain healthy, so the dip is likely based on affordability and should be temporary.” 

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