Nationally, effective asking rents for U.S. apartments climbed 1.3% in April, rising at the fastest pace seen during a single month for the past decade or so and likely at the fastest pace ever, according to new data from RealPage, the leading provider of software and analytics for the real estate industry. In Phoenix, effecting asking rents doubled the national numbers — rising 2.6% in the month of April, the strongest monthly rent growth in the nation. On an annual basis, effective rents were up 11.4 percent, one of the strongest rates in the nation and the first time in more than a decade that rent growth in Phoenix pushed into the double digits.
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Nationally, effective asking rents for U.S. apartments climbed 1.3% in April, rising at the fastest pace seen during a single month for the past decade or so and likely at the fastest pace ever. In Phoenix, effecting asking rents have risen 2.6% in the month of April, the strongest monthly rent growth in the nation. On an annual basis, effective rents were up 11.4 percent, one of the strongest rates in the nation and the first time in more than a decade that rent growth in Phoenix pushed into the double digits.
This upturn in rent growth arrives right at the beginning of prime leasing season. The vast majority of household moves tend to occur in the time frame from April through September.
Average monthly rent for Phoenix stands at $1,341, compared with the national average of $1,453.
Apartment rent growth in April
U.S. apartment rent growth is back in a big way, now that the country’s reopening local economies are fueling household creation and stimulating robust demand for all types of housing.
Effective asking rents for U.S. apartments climbed 1.3% in April, rising at the fastest pace seen during a single month for the past decade or so and likely at the fastest pace ever. (RealPage’s long-term performance history for rents measured change by quarter, rather than by individual month.)
This upturn in rent growth arrives right at the beginning of prime leasing season. The vast majority of household moves tend to occur in the time frame from April through September.
April’s strongest rent increases occurred in the luxury Class A properties that had taken a pricing haircut in many cases over much of the past year. Class A communities registered 2% rent growth for the month, compared to increases of 1.3% for the middle-market Class B projects and 0.3% in the Class C inventory.
April’s increase in pricing power proved to be nearly universal across markets, as 145 of the 150 metros tracked in RealPage’s core data set logged at least a little rent growth for the month. Four metros registered no change in rents, leaving just one market – Davenport, Iowa – with a minor cut in pricing.
Among major markets with at least 100,000 units, Phoenix led the way for rent growth during the month of April. Effective asking rents there climbed 2.6%.
