SANTA BARBARA, CA — Even though U.S. multifamily rents declined in September 2019, the market “remains the picture of stability” amid turbulence in the larger financial world, according to a new report from Yardi® Matrix.
The average national rent fell $1 to $1,471 in the month. However, rents are up 2.9% year-to-date, putting 3% growth for the full year, which has happened five of the last six years, within reach. “There is no evidence to indicate that slow, steady growth will not continue for a while,” the report says.
With the national occupancy rate consistently above 95% and no slowdown in demand, “it’s no wonder that investors looking for a safe haven and surprise-free returns have identified multifamily as an asset class in which to increase allocations,” the report notes.
The August list of rent growth leaders remained virtually unchanged in September, with Las Vegas and Phoenix continuing to hold the top spots. Boston and Sacramento, Calif., switched places while Charlotte, N.C., edged Austin, Texas, out of fifth place.
Download the Yardi Matrix multifamily national report for September 2019 for more insight into supply, occupancy and the federal government’s plan to reform Fannie Mae and Freddie Mac.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types.