July 11, 2019
Apartment List’s multifamily figures for June 2019 have been released, with its national rent growth increasing by 1.6% year over year. While the rate is just ahead of the 1.5% reported for June 2018, the metric lags growth rates observed from 2014-2017, which ranged from 2.5%-3.6%.
The month-over-month increase of 0.4% is “the third straight month of heightened growth, which is consistent with the rental market being in the midst of its peak season,” Apartment List analysts said. Rents increased by 1.3% since March 2019, with the three-month period through June accounting for 81% of rent growth over the past year.
The Apartment List analysts also noted that, while rent growth is trailing the overall rate of inflation (1.8%), it’s well behind growth in average hourly earnings, which increased by 3.1% over the past 12 months.
The table below shows the states that had the highest rent growth percentage for June 2019.
Apartment List noted that Henderson, NV topped the list for the nation’s fastest rent growth, with an increase of 5.1% from the year before. There was a caveat to this metric, however. Analysts noted that, while the Las Vegas metro has been experiencing rapid job growth in recent years, many of those jobs are in low-paying industries. “Continued rent hikes could lead to affordability concerns,” Apartment List analysts noted.
The report also noted that rent growth tends to be higher in late spring and summer months, due to market seasonality. However, Apartment List analysts noted that the recent pace of growth is high, even given seasonality. “If this trend continues after the peak season ends,” the analysts said, “it would signal the end of a protected stretch of relatively stagnant rent growth.”
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