Despite earlier year predictions to the contrary, rents of apartments across the country, along with the very-important renewal rates, remain on the rise, according to a new industry report.
The overall market, says the research firm Yardi Matrix, continues to benefit in general from what is described as a “robust demand.”
The average rent last month nationally hit the $1,725 mark, up by just under 1% from April of 2023. At the same time, the single-family rental market was pegged at $2,154, up by a significant 1.3% since last spring.
“Demand for apartments continues unabated due to high levels of household formation stemming from the strong job market, large numbers of immigrants, and ongoing migration to the South and West,” says Yardi Matrix’s National Multifamily Report.
While absorption is not where it was in 2021, which is regarded in the industry as a historic peak year, “2024 started at a pace that would be on par with an average year and slightly ahead of 2022 and 2023 levels.”
Although month over month growth in all asset classes has been strong in such Eastern and Midwest cities as Boston, Detroit, and Chicago, the numbers have remained particularly consistent in the West, with Denver, Las Vegas, and Phoenix all posting growth rates nearing the 1% level.
Denver has additionally seen a 63.9% rent renewal rate, followed by Phoenix at 63.7%, and Las Vegas at 65.7%. The lowest renewal rate in a Western city covered by Yardi Matrix was seen in Los Angeles, recording a 56.1% increase.
Of the 27 cities seeing renewal rates at or above 60%, 15 are located in either the South or West, indicating the ongoing popularity of those two regions as population meccas.
Other Western cities seeing increased rent growth compared with the spring of 2023 include Albuquerque, up by 1.9%, and San Jose, with a 1.1% increase.
But the Western rent growth rates were not across the board: Colorado Springs, almost always a boom city, recorded a 2.3% decline, as did San Antonio.
By Garry Boulard
Image Credit: Courtesy of Unsplash
