National rent average increased by $3 month-over-month in February, just one positive indicator
SANTA BARBARA, Calif., March 23, 2021 –Year-over-year national average rents were negative in February by 0.1%, but the latest Yardi Matrix National Multifamily Report says they may soon trend into positive territory.
“While national rent growth was negative this month, year-over-year rents have steadily shifted closer to positive since October. If this trend continues, February could be the last month where we see a national decline,” state Yardi® Matrix analysts.
Overall rents increased by $3 in February to $1,399. This is the ninth consecutive month where overall rents have increased or remained flat, which is another sign of recovery. Out of 133 rental markets surveyed by Matrix for February 2021, an impressive 111 had positive month-over-month rent growth.
Meanwhile, the U.S. economy has been bolstered by the newest COVID relief legislation and appears to be heading toward a strong recovery in 2021. Some economists are projecting the possibility of close to 6% GDP growth.
“Outside of the gateway and top 30 markets, we saw a large pop in month-over-month rents in many secondary and tertiary markets,” note the analysts. This continues trends that began just over one year ago, when renters began to look outside major cities for larger apartments and less expensive rents. Gain more insights from the new National Multifamily Report.
Join Yardi Matrix vice president Jeff Adler and team to hear the spring outlook for multifamily during an April 15 webinar. Registration is free and open to all.
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, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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