The national average for cost of rent rose $3 in July from the prior month to $1,469 according to Yardi Matrix. That’s a gain of 3.4% from a year earlier, the real estate data firm said.
Yardi Matrix ranked the top five markets for multifamily rent growth, based on the percent change in rent growth.
These metros have two things in common: a solid job market and steady population growth.
No. 1 is Pensacola, Florida, with a whopping 9.1% change in rent from July 2018 to July 2019. According to Yardi Matrix, this metro has a healthy job sector, contributing to positive population growth. Developers are forecasted to complete more than 2,000 units this year. Rent increased to a record of $1,178 this July.
Wilmington, North Carolina came in No. 2, another metro with a strong job market and population growth. This metro climbed three spots, as it was ranked No. 5 in the first-quarter report. Rent prices went up 8.1%.
The third-largest metro for rent growth is Las Vegas, Nevada, where the average price of rent went up 8%.
The other large metro, Phoenix, Arizona, remains ranked No. 4 on this list, and is also one of the top markets for multifamily deliveries. Developers completed 5,355 apartments through July, with rents rising 7.1%. With average rent at $1,171, it still remains well below the national average, Yardi Matrix said.
Boise, Idaho sits last at No. 5, with rents rising 7.1%. The average rent cost is $1,176, 19.9% lower than the national average.