August 5, 2020
Multifamily rents increased by $2 nationally in July to $1,460, according to a Yardi Matrix report. The monthly increase ended the four-month trend of declines.
However, year-over-year rent growth for July remained negative at -0.3%, unchanged from June, the report says.
Gateway markets continued their steep year-over-year declines in rent growth, led by San Jose (-5.0%) and San Francisco (-4.1%). That’s in contrast from last July, when rents in San Jose grew by 2.0% and rents in San Francisco grew by 2.8%.
Additionally, Yardi Matrix says “renter by necessity” units performed better than their “renter by choice” counterparts, posting a 1.2% monthly increase compared to a 1.7% decrease for the latter.
In the short term, month-over-month rents showed signs of improvement in July, says Yardi Matrix. Twenty-five of the top 30 markets performed better in July than June. However, the report says, month-over-month rent trends “tend to be more volatile and we could see a reversal of this trend next month.”
For comments, questions or concerns, please contact Paul Bubny