Photo: g c/Flickr
Multi-family rents in the US climbed to a new high in June, with the monthly average rising 6.3 percent, year-over-year, to $1,150. Yardi, which provides software solutions for the real estate industry, released its monthly rental market survey of apartment owners across 100 major markets in US markets.
Rent growth, according to the company, which has been above-trend for the last couple of years accelerated even further last month. A number of big cities saw “explosive growth.” Portland, Oregon recorded annual growth of 15.1 percent, Jacksonville, Florida saw a 13.2 percent rise and Denver recorded a 12.4 percent rise. Notoriously expensive San Francisco saw double-digit growth with an 11.6 percent jump.
The increases aren’t limited to a few cities: rising rents are truly a cross-country trend even if the Midwest and Mid-Atlantic regions trail the big booms in the West and Sunbelt.
The increase is also in line with activity over the past few months. June numbers were up 1.3 percent over May, and the average also represented a 2.9 percent increase over the past three months.
Yardi attributes the rise to job growth as well as well as demographic factors, though the multi-family sector tends to see an increase during the spring.
“Recent strong rent growth combined with the long-term absorption trend indicates that gains are likely to intensify in the second half. We expect that robust employment gains, combined with above-trend household formations as Millennials move out of parents’ homes, will produce enough demand to absorb near-term supply,” said the report writers.
Here’s a look at a chart and table by Yardi: