Multifamily rents declined by 0.5% in November on a year-over-year basis
SANTA BARBARA, Calif., December 10, 2020 – The renter exodus from gateway cities like New York, San Francisco, Washington D.C., Chicago, Boston and Los Angeles continues as gateway markets showed larger declines in year-over-year rents this November than the month prior, states the latest National Multifamily Report from Yardi® Matrix.
Overall, multifamily rents declined by 0.5% in November on a year-over-year basis, but more than 100 secondary and tertiary markets are doing better than the national average. Yardi Matrix surveys 135 U.S. metros for multifamily data and includes a selection of the top 30 markets in each month’s national report. In that analysis are some bright spots, including more than 100 secondary tertiary markets that are performing better than the national average, and strong performances from Midwestern cities like Indianapolis and Kansas City.
“Markets like Indianapolis and Kansas City that rarely get the spotlight have seen consistent rent growth throughout the pandemic,” states the report. “In Chicago, the closest gateway market to Indianapolis and Kansas City, the average rent is about 34% more expensive than Kansas City and 32% more expensive than Indianapolis.” That creates an opportunity for attracting residents in search of more space and lower rents. Detroit, South Bend, Ind., and Toledo, Kansas also saw rent gains.
In the struggling gateway cities, Manhattan (-10.2%) led the pack in decline rates, followed by San Francisco (-8.6%), Washington, D.C. (-3.9%), Chicago (-3.4%), Boston (-3.3%) and Los Angeles (-2.9%). Leading all markets were California’s Inland Empire (6.6%) and Sacramento (5.9%) for the second month in a row.
Gain all the latest market insights in the November multifamily report from industry data leader Yardi Matrix.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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