At mid-year, rent growth has stabilized at more than 3 percent and is expected to increase 2.6 percent for the full year, according to Yardi Matrix’s Summer 2019 U.S. Multifamily Outlook.AUG142019
The multifamily market continues to perform positively as we head into the third quarter of 2019. Much like what was predicted back in January, the sector’s rent growth percentages keep increasing. At mid-year, growth has stabilized at more than 3 percent and according to Yardi Matrix’s Summer 2019 U.S. Multifamily Outlook, rents are expected to increase 2.6 percent for the full year. This would be the seventh year in a row that surpasses the 2.5 percent long-term average.
The Southwest and South still continue to dominate the market, largely due to having faster-growing economies and affordable housing. Year-over-year, the top performers include Las Vegas with a rent growth of 8.4 percent, Phoenix (8.1 percent), Tucson (6.1 percent), Tacoma (5.7 percent) and Winston-Salem (4.8 percent). Smaller markets such as Tacoma, Albuquerque and Sacramento “are all benefitting from their proximity to expanding tech markets facing rising affordability issues,” according to the report. Combined, these metros added 1,300 units through June.