Multifamily investments have historically performed strongly, and this past year was no exception. As was recently confirmed by Yardi Matrix, “rent growth in 2021 was more than double any previous year recorded”. Factors aligning, such as the stifled supply of single-family homes, and of course, the pandemic, which led to significant net migrations across the US as renters flocked to submarkets for more space and lower costs of living, made 2021 a year of record-breaking rent growth across a multitude of US markets.
As the increase for housing intensifies, this generally drives asking rent prices higher, particularly in areas where the demand exceeds supply. This week we’ll take a look at which markets showed the most significant growths of asking rents in 2021.
7. Raleigh, North Carolina
Year-over-Year Rent Growth EOY 2021: 19.2%
Year-over-Year Job Growth: 6.1%
Average Rent: $1,510 / 958 sq. ft.
6. Austin, Texas
Year-over-Year Rent Growth EOY 2021: 20.9%
Year-over-Year Job Growth: 7.6%
Average Rent: $1,690 / 865 sq. ft.
5. Las Vegas, NV
Year-over-Year Rent Growth EOY 2021: 22.2%
Year-over-Year Job Growth: 11.5%
Average Rent: $1,421 / 892 sq. ft.
4. Orlando, Florida
Year-over-Year Rent Growth EOY 2021: 22.7%
Year-over-Year Job Growth: 7.0%
Average Rent: $1,733 / 963 sq. ft.
3. Miami Metro, Florida
Year-over-Year Rent Growth EOY 2021: 23.5%
Year-over-Year Job Growth: 5.5%
Average Rent: $1,998 / 886 sq. ft.
2. Tampa, Florida
Year-over-Year Rent Growth EOY 2021: 24.6%
Year-over-Year Job Growth: 5.6%
Average Rent: $1,762 / 927 sq. ft.
1. Phoenix, Arizona
Year-over-Year Rent Growth EOY 2021: 25.3%
Year-over-Year Job Growth: 6.5%
Average Rent: $1,477 / 804 sq. ft.
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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 and Ellie Perlman at www.bluelake-capital.com.