February Rent Growth Ticks Up Slightly
Digested from the Axiometrics Blog
Annual effective rent for February was 2.3 percent, up slightly from January’s 2.2 percent, though down from last February’s 4.1 percent. Average effective rent increased $8 to a national average of $1,285. Year-to-date rent growth was 0.8 percent in February.
Sacramento, Calif., continues—for the 12th straight month—to have the highest annual effective rent growth among the top 50 markets in terms of units. But Sacramento’s February rent growth of 9.0 percent is down from January’s 9.5 percent. Riverside, Calif. (6.7 percent); Fort Worth, Texas (5.4 percent); Las Vegas (5.2 percent); and San Diego (4.7 percent) round out the top five markets for rent growth in February.
In February, Hartford, Conn., had the largest month-over-month rent growth—jumping from 1.0 percent in January to 3.5 percent in February. Hartford was followed by Birmingham, Ala.; San Francisco; San Jose, Calif.; and New York City, which all had negative rent growth in January. San Francisco is still in negative territory but is moving closer to even.
After five months of declines, the national occupancy rate increased to 94.5 percent in February. Occupancy has increased each February since the end of the Great Recession.