National Apartment Rent Growth Surges in Early 2016
Digested from Apartment Annual Effective Rent Growth Above 4.0% for 7th Straight Quarter According to Axiometrics MultifamilyBiz.com (4/6/16)
Rent growth in the national apartment market made a strong showing in early 2016, according to Axiometrics. The apartment and student housing research and analysis firm found that rents grew 4.1 percent in the first quarter not as impressive as the 5 percent of a year ago, but nevertheless representing one of the highest first-quarter peaks since the Great Recession ended.
Occupancy also reached nearly 95 percent in the first quarter of 2016, the highest its been since it reached 95.7 percent in the first quarter of 2001.
From a cumulative standpoint, the news is promising: Axiometrics reports that annual effective rent growth over the past seven quarters has been 4 percent or higher. Thats only the second time that growth of 4 percent or higher has been posted for such an extended time in the 21 years that Axiometrics has been reporting.
With the exception of Oklahoma City, the other 49 of Axiometrics top 50 markets enjoyed positive annual effective rent growth during the first quarter.
Even though rent growth is moderating, as Axiometrics forecast, 4.0 percent growth is still well above the long-term average, said Jay Denton, Axiometrics senior vice president of analytics. The significant declines in primary metros such as the Bay Area, New York, Denver and Houston are being somewhat offset by robust gains in secondary markets like Sacramento, Orlando and Salt Lake City.
With a rate of 10.68 percent, Sacramento overtook Portland to take top spot for highest annual effective rent growth among the top 50 markets.