These Five Markets Are Going Strong
Digested from National Real Estate Investor
For the past few years, the leaders in rent growth have been America’s largest cities (think New York, San Francisco, Los Angeles and Washington, DC). But new supply in those cities has moderated rent growth, leaving smaller cities and markets to rise to the fore. Currently, here are the top five markets in terms of rent growth.
1. Sacramento, California. Both Axiometrics and MPF Research rank California’s capital as the leader in rent growth. The occupancy rate is 97.2 percent, and only 2,200 units are under construction.
2. Seattle, Washington. Unlike the other markets on this list, Seattle’s rent growth has remained strong even as the city has added significant new supply—11,000 new units in 2016. But the tech sector continues to add jobs, so strong rent growth and above average annual supply increases can coexist.
3. Riverside and San Bernadino, California. Known as the Inland Empire, these two Southern California cities were later to recover from the recession and have not added much new supply.
4. Fort Worth, Texas. Strong job growth and limited new apartment construction has kept rent growth high in Fort Worth. However, new construction is accelerating, which will soon make the current rent growth hard to sustain.
5. Atlanta, Georgia. Today one of the hottest job markets, Atlanta was slow to come out of the recession, so the city hasn’t seen a lot of new supply over the past few years.