Despite finishing flat, the U.S. multifamily sector enjoyed a solid year in 2018. The $1,419 average national rent in December, unchanged from the previous month, capped a year in which rents grew by 3.2%, according to a survey of 127 markets by Yardi Matrix.
Rents have increased by 31% since January 2011 and have grown by at least 2.9% every year except one since then. While acknowledging concerns that the unusually long cycle has played out, a report on the survey cites “reasons to believe multifamily fundamentals will remain vigorous in 2019 and beyond.”
Chief among those reasons is ongoing strong demand fed by a growing cohort of prime renter-age individuals, robust job growth and social factors such as student loan debt that limits first-time homebuyers.
The year-over-year rent growth leaders in December were virtually unchanged from November, with Las Vegas, Phoenix, California’s Inland Empire and Atlanta again occupying the top spots. San Jose, Calif., edged out Orlando, Fla., for fifth place.
View the full Yardi Matrix Multifamily National Report for December 2018 for additional detail and insight into 127 major U.S. real estate markets.
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, industrial, office and self storage property types. Email email@example.com, call 480-663-1149 or visit yardimatrix.com to learn more.