Updated: Mar 7, 2021
As we move through months of stay-at-home orders, there continues to be a buzz of data gathering and analysis happening in real time and with sharp focus. While 38.6 million applicants have filed for unemployment, overall April rent collections proved strong nonetheless. According to the National Multifamily Housing Council Rent Payment Tracker, collections reflected an encouraging 96.6% compared to the previous month.
While there is still much to be seen as we move ahead into June and gather final data on May, overall market impacts have varied and will continue to do so as some of the restrictions are being lifted. Nationally, a downward trend of rent increases month over month for April was -0.5%, one of the most significant drops since the Great Recession. This is also evident in the year-over-year increase of April being only 1.6%.
Yet, some markets have still remained strong, particularly when focusing on the niche demographic of what's known in the industry as "renters by necessity". Renters by necessity are generally housed in Class B and C properties, as they provide basic housing needs and affordability. Some of the sharpest declines in rent growth were seen (and are anticipated to continue for a time) in Class A luxury properties, while many Americans are likely choosing to remain conservative with expenses until a time of stabilization is re-captured.
The following list shows the top 10 markets with the lowest declines, and for some even continued gains, in rent increases for renters by necessity. However, there are variabilities amongst properties within a market of course. For example, while Atlanta is showing an increase of month-over-month rent growth of only 0.08%, we are seeing an average of 18% rent increases during May 2020 in some of our Atlanta properties.
As we continue to move through these tremendous shifts, we will actively monitor and continue to share this important and timely data with you.
10. Baltimore, MD
Overall Population: 590,479
Renter Occupied Households: 47%
Month-Over-Month Rent Growth: -0.25%
9. Twin Cities, MN
Overall Population: 437,069
Renter Occupied Households: 55%
Month-Over-Month Rent Growth: -0.19%
8. Las Vegas, NV
Overall Population: 662,000
Renter Occupied Households: 37%
Month-Over-Month Rent Growth: -0.1%
7. Phoenix, AZ
Overall Population: 1,703,078
Renter Occupied Households: 36%
Month-Over-Month Rent Growth: -0.1%
6. Philadelphia, PA
Overall Population: 1,591,800
Renter Occupied Households: 45%
Month-Over-Month Rent Growth: -0.07%
5. Dallas, TX
Overall Population: 1,382,267
Renter Occupied Households: 42%
Month-Over-Month Rent Growth: 0%
4. Atlanta, GA
Overall Population: 523,738
Renter Occupied Households: 57%
Month-Over-Month Rent Growth: 0.08%
3. Houston, TX
Overall Population: 2,340,888
Renter Occupied Households: 39%
Month-Over-Month Rent Growth: 0.1%
2. Sacramento, CA
Overall Population: 521,769
Renter Occupied Households: 40%
Month-Over-Month Rent Growth: 0.15%
1. Tampa, FL
Overall Population: 413,704
Renter Occupied Households: 44%
Month-Over-Month Rent Growth: 0.37%
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About the Author
Ellie is the founder of Blue Lake Capital, a real estate company specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
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.