Renewal Rent Growth Helping Lower-Performing Markets
Digested from Axiometrics Blog
In the first quarter of 2017, the strongest apartment markets generally saw rent growth for new leases outperform rent growth for renewals, while the opposite tended to be true in lower-performing markets, according to data from RealPage.
Among Axiometrics’ top 50 markets based on number of units, the top five markets for rent growth are Sacramento, California; Seattle; Riverside/San Bernardino, California; Portland, Oregon; and Oakland, California. Three of these markets (Sacramento, Seattle and Riverside/San Bernardino) had higher rent growth rates for new leases, Oakland was basically even (though rent growth for renewals was slightly higher) and Portland had higher rent growth for renewals.
In the bottom five markets for rent growth within Axiometrics’ top 50 markets—Birmingham, Alabama; Baltimore; New York; Houston; and Oklahoma City—all had higher rent growth for renewals.
The national average for new-lease rent growth in the first quarter of 2017 is 4.0 percent and 4.8 percent for renewal growth.