You’ll Never Guess Where Rents Have Grown the Most
Spoiler Alert: No California or Florida Cities Made the List
According to the latest Yardi Matrix National Multifamily Market Report, rents across the U.S. have posted their strongest gains in more than 20 months. However, two regions in particular have boasted the most growth - the Northeast and Midwest.
Rent growth throughout the Northeast and Midwest continues to outperform the West Coast and Sunbelt.
The New York City rental market was crushed throughout the early stages of the pandemic lock down. Vacancies skyrocketed and asking rents plummeted. But today, the NYC rental market is stronger than ever. It came in #1 amongst all other major metros in the nation; posting 5% YOY rent growth.
Second, third, and fourth place were all taken by Midwest metros. Rents in Columbus grew 4.5% year-over-year. They rose 3.7% in Kansas City. And Indianapolis saw 3.5% rent growth over the past year.
The remaining six spots on the top ten list were shared equally by Northeast and Midwest metros; with the exception to Washington D.C., which took #7 on the list with 2.8% YOY rent growth.
All ten metros have been listed below; starting with the markets that have had the most robust rent growth.
Top 10 Markets With the Most YOY Rent Growth
New York City - 5.0%
Columbus - 4.5%
Kansas City - 3.7%
Indianapolis - 3.5%
New Jersey - 3.4%
Chicago - 3.1%
Washington D.C. - 2.8%
Boston - 2.6%
Philadelphia - 2.2%
Twin Cities (Minnesota) - 2.0%
Most aren’t surprised by the rebound the New York City rental market has made. But it’s worth noting that San Francisco, Los Angeles, Miami, nor Vegas made the list.
The slow recovery is being priced into asset values and CAP rates. This opens a window of opportunity for multifamily and apartment investors that remain bullish on the long-term growth trajectory of the SF, LA, Miami, and Vegas markets.
If you’re considering a home purchase, sale or investment this year, and you’d like professional guidance and assistance throughout the process, our team is here to help.
In Other News
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