National asking rents increased by 10.3% in August, the first double-digit increase in the history of our data set, as nearly all the metros Yardi Matrix tracks exhibited positive YoY rent growth in August. The recovery in rents is widespread, fueled by job growth, excess savings, and a return to urban cores.
Multifamily asking rents increased an astounding 10.3 percent in August on a year-over-year basis and overall rents increased by $25, to $1,539 a month, according to the Yardi Matrix National Multifamily Report.
The 10.3 percent increase “was the first ever double-digit increase in the history of our dataset,” the report said.
All metros that Yardi Matrix tracks had positive year-over-year rent growth in August, with a couple of exceptions, as “the rebound is no longer concentrated in tech-hub metros in the Southwest and Southeast, although some year-over-year numbers seem inflated as they are comparing current rents to last summer, when many metros were struggling,” the report said.
Some highlights from the report:
- Tech-hub metros that have led the nation in rent growth over the last year and a half continued to outperform.
- Not only are tech-hub markets doing well, all top 30 metros had positive year-over-year rent growth for the first time since the beginning of the pandemic.
- Single-family (built-to-rent) rents continue to grow at an even faster pace than multifamily, with national rents up 13.9 percent year-over-year.
- Occupancy continues to rise as well, up 1.1 percent year-over-year.
- Fast-growing tech hub markets continue to lead the list. Phoenix (22 percent), Tampa (20.2 percent), and Las Vegas (19.2 percent) are all benefiting from strong job growth coupled with excess savings that was built up over the last year and a half, enabling renters to afford higher-end apartments.
“Many people who were living at home during the pandemic or were living with roommates are now able to afford their own apartments, creating a surge in demand,” the report said.
Seattle stands out as a metro that struggled throughout the pandemic, due in part to a surge in remote work, especially in the tech sector, that drove people to leave the metro. This month, however, Seattle rents increased by an astounding 3.1 percent.
Single-family rentals have strong fundamentals
“As the eye-popping rent growth continues in the single-family rental sector, institutional investors are getting more active,” the report said.
“Blackstone Real Estate Income Trust Inc. and Invesco Real Estate Trust announced deals in June totaling a combined $11 billion.
“As millennials reach home-buying age, the price of single-family homes continues to be out of reach for many. The continued single-family home price appreciation, coupled with a need for more space, is fueling strong demand for the sector that is unlikely to slow,” Yardi Matrix said 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
