Rental Growth In The Multifamily Market

On this podcast, Doug Ressler, Manager of Business Intelligence at Yardi Matrix, breaks down the U.S. Multifamily Outlook Report.

Rent Growth Trends

Curious what's driving rent growth in today's market? Doug shared the three main drivers.

The 3 drivers behind multifamily rent growth:

• Migration: Generation Z, Millennials, and Baby Boomers are all unified in leaving gateway cities and seeking apartments in more affordable communities.
• Housing Affordability and Availability: With heavy demand for homes and limited supply, home prices continue to rise. This dynamic has increased the number of people entering the rental market.
• Government Stimulus: Enhanced unemployment benefits and stimulus checks have helped offset loss of income and allowed residents to continue to make their rental payments.

"You look at millennials in particular who are aging, who should be out looking for homes. Who are not because their home affordability and the home availability is not there."

-Doug Ressler

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Where Rents Are Rising The Fastest?

According to the Yardi Matrix Multifamily National Report the Year-over-Year National Rental Growth Rate is 6.3%, but not all markets are created equal. Below are the top 5 markets for rent growth.

Top 5 Markets for Rent Growth

1. Phoenix - 17.0%
2. Tampa - 15.1%
3. Inland Empire - 15.1%
4. Las Vegas - 14.6%
5. Atlanta - 13.3%

What About Gateway Markets?

The gateway markets took a big hit in 2020 when remote work became the norm and cities were forced to shut down. People fled the big cities for affordable housing in smaller cities, leaving investors uncertain about gateway markets.

"Certainly big cities are not going to blow away. They are going to come back and they're going to come back from a resilient standpoint. "

-Doug Ressler

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Learn More About Yardi Matrix

Yardi Matrix U.S. Multifamily Outlook Report, click here

Visit Yardi Matrix, click here ‍

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Listen To The Full Episode, click here