Steady U.S. rent growth continues

The apartment market saw a $2 rise in average U.S. rents in February 2019 and year-over-year growth of 3.6 percent, the highest since late 2016, which point to the multifamily industry’s continuing strength, according to a new report from Yardi Matrix.

A February survey of 127 major U.S. real estate markets indicates demand, bolstered by a job market with low unemployment and accelerating wage growth, shows no signs of slowing. Demand is most pronounced in metros with strong population gains and healthy job growth. Apartment rents averaged $1,426 for the month.

The latest numbers “are evidence that the market has strength to perform well for a while, even if the economy or other commercial real estate segments slow down,” the report said. “Occupancy rates have ticked down slightly, but absorption has been no problem.”

February’s year-over-year rent growth leaders were Phoenix, Las Vegas, Sacramento, Atlanta and California’s Inland Empire.

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