“Much of the gains in 2021 will merely be making up lost ground from 2020”
Most markets saw an improvement in rent growth in May, as more states and cities start to reopen thanks to vaccine rollouts.
A multifamily report from Yardi Matrix revealed that rent growth was up by 0.88% in May, the largest month-over-month rent gain recorded in the report’s history. Yardi expects this trend to continue in the short term.
However, that growth may be toned down by typical seasonal factors as renters are less likely to relocate during the winter.
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“Seasonal pressures should begin to put a damper on rent growth for most markets toward the end of the year, but that dampening effect will not be enough to offset the positive pressures from pent-up demand for the amenities that cities have to offer, and many markets will see record or near-record year-over-year growth by the end of the year. However, much of the gains in 2021 will merely be making up lost ground from 2020,” the commercial real estate data company wrote in the report.
While many metros are anticipated to have a banner year for growth, gateway cities will likely continue to experience modest gains and may not reach their full growth potential until 2022.
Yardi projected that affordable metros like Reno, the Tri-Cities, Macon, Harrisburg, and Omaha will see close to double-digit growth. Meanwhile, suburban Atlanta, Tampa, Las Vegas, Portland and Austin are positioned to exceed 5% year-over-year growth.
