Multifamily Rents Surging According to Yardi Rent Forecast Update
According to Yardi Matrix's latest Multifamily Rent Forecast Update, rents across the country are surging, with the largest gains in the non-coastal West and South regions. From the report:
The rapid growth in multifamily rents continues unabated, with increases from May to June averaging 1.56%, nearly doubling the record average
month-over-month increase of 0.88% recorded from April to June 20211. With the exception of Queens, every market tracked by Yardi Matrix saw an increase in rents during this period. The largest gains were concentrated in the non-coastal West and South, with Boise, Colorado Springs, the Tri-Cities, and Wilmington all seeing greater than 3.5% increases for the month. And many of our top 30 markets also had exceptionally large month-over-month rent increases: Phoenix, Tampa, Raleigh, Orlando, Atlanta, Denver, and Austin all realized gains of over 2%...
The primary drivers of the extreme rent increases we are seeing right now are Discretionary and Upper Mid-Range buildings. For the May—
June period, both Discretionary and Upper Mid-Range units increased by an average of 1.9%—more than double the increase seen in Workforce
housing (0.8 – 0.9%). Since the beginning of the year those upper-tiered buildings have seen an average rent increase of over 7%, while the lower tiers have seen an increase of just over 3%.