Rents slide in seasonal downturn; unit absorption tops 250,000 for 6th straight year
SANTA BARBARA, Calif., Dec. 10, 2019 – Demand for multifamily housing remains high across the U.S., according to a new report from Yardi® Matrix.
Although the winter seasonal slowdown clipped $3 off the average rent in November 2019, rents were up 3.1% year-over-year that month. Rent growth has exceeded 3% since the spring of 2018 because of strong and consistent demand. The report projects that the seasonal rent growth slowdown will extend through early 2020.
More than 320,000 multifamily units have been absorbed this year, short of the cycle peak of 377,000 in 2016 but enough to notch the sixth straight year with at least 250,000 units absorbed. Seattle, Denver and Dallas are the leaders in this category, with Washington, D.C., and Texas metros Houston and Austin also making strong showings.
November’s year-over-year rent growth leaders reshuffled the October list, with Phoenix and Las Vegas again holding the top spots. Sacramento, Calif., California’s Inland Empire and Raleigh, N.C., rounded out the top five metros.
Get up to speed on the employment, supply and occupancy trends affecting multifamily real estate in the Yardi Matrix national report for November 2019.
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