National Year-Over-Year Multifamily Rent Growth at 10.6%, Down from 11.4% in March
Today, Apartments.com – a leading national online marketplace owned by CoStar Group – released an in-depth look at national multifamily rent growth trends for April 2022 backed by analyst observations.
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(Graphic: Business Wire)
“Overall, April saw a slight deceleration of rent growth both nationally and at the market level,” said Jay Lybik, National Director of Multifamily Analytics, CoStar Group. “However, in our minds, the bigger takeaway from this report is the number of formerly high-flying rental markets experiencing notable decelerations in rent growth as the month closed.”
SUNBELT MARKETS HOLD STRONG
Sunbelt markets continue to dominate the top rent growth markets, with the top 10 markets in terms of year over year rent growth located in the Sunbelt. This includes five markets in Florida, two in North Carolina along with Las Vegas, Nashville and Austin.
STAGGERING RENT GROWTH SLOWS
The number of markets witnessing rent growth above 20% has declined from eight at the end of 2021 to just four in April, indicating a tempering of rent growth.
This tempering can be felt across the board. Despite the thriving performance from sunbelt markets, Phoenix, in particular, has experienced a dramatic slowing in rent growth. The report finds that year-over-year asking rents fell from 22% in the fourth quarter of 2021 to 15.6% at the end of April 2022.
In 2021, Atlanta and Orange County, California, experienced significant growth, often landing among the top 10 growing markets. In April, both experienced a significant slowing, with Atlanta’s rent growth dropping 370 basis points and Orange County down 210 basis points in the new year. San Francisco experienced a drop of 2%, down to 6.5% in April 2022 from 8.5% at the close of 2021.
MONTH-OVER-MONTH GROWTH TELLS A SLIGHTLY DIFFERENT STORY
While year-over-year findings show a slowing of rent growth on a national level, month-over-month findings show the national average rent growing by 0.8%.
At the month-over-month level, the top 10 performing markets are dispersed across the country, a stark contrast compared to the sunbelt market concentration seen in the year over year rent growth metrics.
Lybik continued: “While the sunbelt markets are still well-represented among the top 10 – with Charlotte, N.C., notably leading the monthly numbers – we are seeing a handful of other regions holding strong on a monthly level. Midwest markets like Columbus, Ohio, and Indianapolis, and gateway cities like Boston and Seattle are also experiencing strong upticks in rents over the past 30 days. Heading into the spring leasing season, we will be watching these markets closely to see how they perform.”
About CoStar Group, Inc.
CoStar Group, Inc. (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information and analytics. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. Realla is the UK’s most comprehensive commercial property digital marketplace. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada and Asia. From time to time, we plan to utilize our corporate website, www.costargroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
About Apartments.com
Apartments.com is a leading online apartment listing website, offering renters access to information on more than 1,000,000 available units for rent. Powered by CoStar, the Apartments.com network of sites includes Apartments.com, ApartmentFinder.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, ForRent.com, ForRentUniversity.com, After55.com and CorporateHousing.com. Apartments.com is supported by the industry’s largest professional research team, which visits and photographs properties nationwide. The team calls each month to apartment owners and property managers, collecting and verifying current availabilities, rental rates, pet policies, fees, leasing incentives, concessions, and more.
Apartments.com offers more rental listings than any other listing website in the U.S., with innovative features including a drawing tool that allows users to define their own search areas on a map, and a “travel time” feature that lets users search for rentals in proximity to a specific address. Apartments.com creates easy access to its listings through a responsive website and iOS and Android apps and provides exposure for its advertisers through an intuitive name, strategic search engine placements and innovative emerging media.
The Apartments.com network reaches millions of renters nationwide, driving both qualified traffic and highly engaged renters to leasing offices. For more information visit Apartments.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220506005298/en/