Report: region nearly leads nation in apartment rent increase
Yardi Matrix’s National Multifamily Report says rent growth, overall, has been 'astonishing.'
Business Observer Staff
| 12:26 p.m. July 25, 2021
If the national multifamily market is a rocket ship (and it is, based on multiple reports and anecdotal evidence) then the Tampa market is its propulsion system.
The latest orbit comes from Scottsdale, Arizona-based Yardi Matrix’s National Multifamily Report for June, which analyzed 30 of the largest metro markets across the country in apartment rent increases. The Tampa market sits atop the report, tied with Phoenix, with the highest gains in month-over-month rent increases, at 2.5% in June. The Tampa region ranked No. 2, tied with the Inland Empire in Southern California, in the highest rent gains year-over-year through June, up 15.1%. Phoenix was No. 1 in that category, at 17%.
Multifamily asking rents nationally, the report found, increased 6.3% year-over-year in June — the largest year-over-year increase in the history of the report. “Rents grew an astonishing $23 in June to $1,482 — another record-breaking increase,” the report adds.
Lifestyle rents, defined as luxury or higher-end apartments, are growing at a faster pace than what the firm calls renter-by-necessity rents, the report states, adding that’s “something we have not seen since 2011 and another sign of a hot market.” Rents for single-family, or build-to-rent, units rents grew even faster, at an 11% year-over-year pace.
While the report focused on large metro regions, it included a separate analysis of 20 other smaller regions. In that data set, the Southwest Florida region posted the fifth-highest gain in year-over-year apartment rents, at 13.3%.