Phoenix tops the list of the markets that reported rent increases in December
The multifamily sector experienced steady rent growth in 2019 despite a $1 cut in the average rent in the US, according to a new report from Yardi Matrix.
A healthy job market and low unemployment boosted the 3% year-over-year rent growth. On a monthly basis, the average US rent fell $1 in December to $1,474.
“Fundamentally, the market is sound, with no red flags on the immediate horizon,” the report said. “Despite deliveries of roughly 300,000 units for the year, the occupancy rate for stabilized properties was 94.9% as of November, down only 10 basis points over the last year. The healthy job market, averaging 180,000 new jobs per month, and the unemployment rate of 3.5% helped produce steady absorption.”
Of the top 30 metros Yardi Matric tracked, 21 markets saw rents rise by 2.6% in December, led by Phoenix (7.7%), Las Vegas (5.4%), and Sacramento (5.1%). Philadelphia (3.9%), Washington, D.C. (3.8%), and Boston (3.6%) followed.
Other markets posted slower rent growth throughout 2019. Orlando closed the year at 1.3%, down from 5.2% in January. San Jose kicked off at 4.7% and ended up at -0.3%. Meanwhile, San Francisco and Denver started at 4.5% and 3.4%, but ended at 1.6% and 1.5%, respectively.
“All of these metros have a strong economic base, so it would seem likely that growth will rebound,” Yardi wrote. “Despite pockets of concern, 2020 should be a healthy year.”
