Multifamily growth is on track to keep its string of 3 percent full-year rent growth numbers alive, despite flat September growth, according to the latest report from Yardi Matrix.
“As volatility again rears its head in the larger financial world, the multifamily market remains the picture of stability,” the report says.
This will be the sixth time in the past seven years that annual multifamily growth has hit the 3 percent level, despite a weak third-quarter performance.
Apartment rents have increased by at least the 2.5 percent long-term average for seven years running, with no signs that the trend will slow, the report says.
Plus, the average national occupancy rate has been above 95 percent for several years, and “housing trends would indicate that demand will remain strong for some time to come.,” the report says.
“Contrast the recent up-and-down of the stock and bond markets with the consistent growth in the multifamily industry, and it’s easy to see why investor demand for apartments remains so strong.
Highlights of the multifamily growth report
- Multifamily rent growth flattened in September, as the average U.S. multifamily rent declined by $1 to $1,471. Year-over-year rent growth fell 20 basis points but remains at a healthy 3.2 percent.
- U.S. rents rose 0.3 percent in the third quarter of 2019, and rents have grown 2.9 percent through the first three quarters of 2019. That represents a slight slowdown from the same periods over the last few years, but the performance is very respectable compared to long-term historical trends.
- Las Vegas (6.8 percent), Phoenix (6.1 percent) and Sacramento (4.7 percent) remain unshakeable at the top of the metro rankings, but beyond those markets there is a lot of movement. For example, growth has moderated in Florida metros Tampa and Orlando (both 2.4 percent) and Miami (2.2 percent).