Multifamily asking rents jumped another 8.3 percent in July, bringing the year-to-date increase to a record-shattering 8 percent. Overall, national average rents grew $26 in July to $1,510, reports Yardi® Matrix.
The back-to-back record months reflect a faster than expected recovery for the multifamily market but especially for gateway metros, which are quickly making up lost ground. San Jose (3.6 percent growth) leads, followed by Boston (3.2 percent) and New York (3 percent). Of the 140 metros that Yardi Matrix covers, 50 had double-digit year-over-year (YoY) rent growth in July, and 129 out of 140 had positive YoY growth.
The report notes that rents for single-family rentals in build-to-rent communities continue to grow at an even faster pace than multifamily, with national rents up 12.8 percent YoY. Occupancy continues to rise as well, up 1.2 percent YoY.
“The demand for multifamily has produced a remarkable recovery across the country,” say Matrix analysts. “The recovery of the multifamily industry is no longer limited to the Southeast and Southwest metros that have fared well during the pandemic – it’s nationwide.” Note that the data reflects asking rents by landlords and property managers. Rent increases for renewals are growing at a slower pace.
Yardi Matrix data is supported by many publicly traded REITs, which report similar increases. REITs that are concentrated in the Sun Belt are showing even higher gains, some reaching double digits.
Gain more insight on the sector’s resurgence from the latest Matrix Multifamily Market report.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email email@example.com, call 480-663-1149 or visit yardimatrix.com to learn more.