Solid growth for the year counters an expected reduction in December
SANTA BARBARA, Calif., Jan. 4, 2017 – A decline of $4, on average, in U.S. monthly rents in December failed to damper what was overall a strong year for rent growth in 2016.
The national monthly rent average for December was $1,210, according to data compiled from 123 markets surveyed by Yardi® Matrix. Rents grew 4% on a year-over-year basis in December.
While rents fell by $10 in the last four months of 2016, with some metros—including Houston; San Francisco; Boston; Austin, Texas; Miami and Denver—showing considerable flattening, normal seasonal factors accounted for some of the decline.
“As we have stressed in recent months, fundamentals remain sound and deceleration is not alarming,” the report states.
Leaders in year-over-year rent growth in December were Sacramento, Calif., California’s Inland Empire, Portland, Ore., Seattle and Las Vegas.
Looking ahead to 2017, the monthly Yardi Matrix report predicts continuing deceleration in the first half of the year followed by potential growth spurred by economic stimulus and an anticipated decline in new supply.
To see the full December report, click here.
Yardi Matrix is a business development tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily sector. Email [email protected], call 480-663-1149 or visit www.yardimatrix.com to learn more.
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information, visit www.yardi.com.