December 7, 2018
Despite an expected seasonal decline, the U.S. multifamily market has enjoyed a solid year in 2018. Rents fell by $2 in November to $1,419, according to a survey of 127 markets by Yardi Matrix. Multifamily rent growth in 2018 stands at 3.1%, higher than most estimates coming into the year.
Rents have stalled in the fourth quarter, a typical pattern points out Yardi Matrix, declining by $3 from their September peak. Demand continues to be the main driver of the robust market, as new household formation helps fill new multifamily supply.
“It’s a testament to the economy’s strength that most of the metros with the highest supply pipelines are maintaining occupancy rates and moderate rent growth,” the report notes, including Nashville, TN, Austin, Denver and Miami.
Year-over-year rent growth leaders for November were Las Vegas, Phoenix, Southern California’s Inland Empire, Atlanta and Orlando.
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