Multifamily markets showed record-breaking year-over-year rent growth nationally in April, according to the latest report from Yardi Matrix.
“All Top 30 markets had positive month-over-month rent growth last month, the first time that has occurred since March 2020,” the report says.
Rents increased the most on a year-over-year basis since March 2020 and on a dollar-amount basis since June 2015, Yardi Matrix said.
Highlights of the April Yardi Matrix multifamily market report
- Multifamily rents increased by 1.6 percent on a year-over-year basis in April, “the largest increase that we have seen since the beginning of the pandemic.”
- Overall rents increased by $10 in April to $1,417. The last time overall rents increased by that amount in a month was June 2015.
- Out of our Top 30 markets, 24 had month-over-month rent growth greater than 0.5 percent.
- Gateway markets continued their path to recovery this month, with all gateway markets showing positive month-over-month gains in April.
- Only six markets out of our Top 30 had negative year-over-year rent growth this month. One of the six, Austin (-0.1 percent), is poised to turn positive next month, given the strong month-over-month gains. The other five markets, including Seattle and San Francisco, had solid gains as well, but are a little further behind in their rebounds.
- Among the markets surveyed this month, 117 out of the 134, or 87 percent, had positive year-over-year rent growth in April.
“The Inland Empire, Sacramento (8.4 percent) and Phoenix (8.1 percent) have been leading all markets for rent growth for the past few years, and the pandemic has only accelerated that trend.
“Over a five-year period, rents in the Inland Empire have increased by 31 percent. Rents in Sacramento and Phoenix have increased by 34 percent.
“To put that in perspective, national rents have increased by 12 percent over a five-year period. Five years ago, overall rents were extremely low in each of the three aforementioned markets, with plenty of room to run. But with such strong growth over the past five years, when will rents begin to taper off in these markets?
“The good news is that the distress seems to be extremely concentrated in select urban core submarkets, with the further potential distress discussed at the beginning of the pandemic not likely to come to fruition,” Yardi Matrix says in the report.
About Yardi Matrix:
Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.