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The 10 Markets Leading the US Economy in Double-Digit Rent Growth
The United States continues to revitalize itself leading into July of 2021. Vaccine rates are rising, an increasing number of states are beginning to re-open, and multifamily rent is following the trend as well with an average increase in rent growth in multiple markets. According to the May 2021 Yardi Matrix Multifamily Report, national rents have increased by 2.5% year-over-year in May 2021; a number that mirrors pre-pandemic rent growth rates from March of 2020. These are excellent indicators the market is in recovery and multifamily investing remains strong and stable.
Furthermore, with 2.5% being the average, there are several key markets exceeding this number even more with double-digit percentages in growth. While there are some investors that chose to invest in their own “backyard,” there is validity to expanding your portfolio out-of-state, as key markets pose better opportunities for higher ROI’s.
Below are the 10 markets with the highest annual rent growth as of May 2021:
The 10 Markets with Annual Double-Digit Rent Growth:
10. Greensboro / Winston-Salem, NC
May 2020 – May 2021 Rent Growth: 10.1%
Median Household Income: $42,219
Average Current Rent (1BR): $1,000
Renter Occupied Households: 42%
9. Salt Lake City, UT
May 2020 – May 2021 Rent Growth: 10.2%
Median Household Income: $45,833
Average Current Rent (1BR): $1,289
Renter Occupied Households: 49%
8. West Palm Beach, FL
May 2020 – May 2021 Rent Growth: 11.5%
Median Household Income: $45,027
Average Current Rent (1BR): $1,656
Renter Occupied Households: 46%
7. Atlanta, GA
May 2020 – May 2021 Rent Growth: 11.7%
Median Household Income: $46,439
Average Current Rent (1BR): $1,559
Renter Occupied Households: 57%
6. Jacksonville, FL
May 2020 – May 2021 Rent Growth: 12.1%
Median Household Income: $46,768
Average Current Rent (1BR): $1,196
Renter Occupied Households: 37%
5. Tampa, FL
May 2020 – May 2021 Rent Growth: 12.3%
Median Household Income: $43,740
Average Current Rent (1BR): $1,451
Renter Occupied Households: 44%
4. Sacramento, CA
May 2020 – May 2021 Rent Growth: 13.1%
Median Household Income: $50,013
Average Current Rent (1BR): $1,584
Renter Occupied Households: 40%
3. Las Vegas, NV
May 2020 – May 2021 Rent Growth: 13.6%
Median Household Income: $50,903
Average Current Rent (1BR): $1,196
Renter Occupied Households: 37%
2. Riverside/ San Bernardino, CA
May 2020 – May 2021 Rent Growth: 14.8%
Median Household Income: $56,089
Average Current Rent (1BR): $1,735
Renter Occupied Households: 27%
1. Phoenix, AZ
May 2020 – May 2021 Rent Growth: 15.7%
Median Household Income: $46,881
Average Current Rent (1BR): $1,252
Renter Occupied Households: 36%
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About the Author
Ellie is the founder of Blue Lake Capital, a commercial real estate investment firm specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.
Ellie is the host of REady2Scale , a podcast that highlights honest, insightful, and thought-provoking discussions on the multiple approaches for successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.
Sources:
https://www.realpage.com/analytics/apartment-rents-occupancy-soar-may-2021/
https://www.yardimatrix.com/publications/download/file/1265-MatrixMultifamilyNationalReport-May2021