Rent Growth Tempers in April, Yardi Matrix Market Report Shows

Rent growth rates slow as affordability becomes a factor in many metros

SANTA BARBARA, Calif.--()--Multifamily rents in the U.S. rose slightly in April, although the rate of growth fell below the long-term average, according to data compiled in the most recent survey of 121 markets by Yardi® Matrix. View the latest Yardi Matrix report.

Average U.S. rents rose $3 during the month to $1,314, an increase of 2% but well below the 5.5% growth rate of a year ago and the lowest year-over-year percentage increase since April 2011.

The figures are expected, the report says, “given the rapid increase in supply and the inevitable return to growth that is more in line with income gains.”

According to the report, “Rents have (in most metros and most segments) far exceeded the rate of income growth in recent years, when the number of renters increased rapidly while supply nosedived in the wake of the last recession. Now rents are peaking and have become difficult to afford for the average resident in many metros, while supply is at cyclical peaks.”

Three California real estate markets led year-over-year rent growth in April: Sacramento, the Inland Empire and Los Angeles. Others in the top five were Minnesota’s Twin Cities and Seattle.

View the full April report for additional detail from 121 major real estate markets.

Yardi Matrix is a business development and asset management 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. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information, visit yardi.com.

Contacts

Yardi Systems Inc.
Jeff Adler, 303-908-5242
Jeff.Adler@yardi.com

Release Summary

The latest Yardi Matrix report states, “Rents have (in most metros and most segments) far exceeded the rate of income growth in recent years." Rent growth rates slow as affordability becomes a factor.

Contacts

Yardi Systems Inc.
Jeff Adler, 303-908-5242
Jeff.Adler@yardi.com