U.S. Multifamily Market Stays Strong into 4th Quarter, Yardi Matrix Reports

October performance sets a record amid rising political pressure to cap
rent growth

SANTA BARBARA, Calif.,
Nov. 15, 2019 – Continuing
strong demand drove the average U.S. rent to a new high of $1,476 in October
2019, according to Yardi®
Matrix.

Seventeen of the 30
major markets tracked by Yardi Matrix experienced year-over-year rent growth of
at least 3.3% in October while only two trailed the 2.5% long-term average. The
average national multifamily rent has grown by 32% since January 2012.

Phoenix, Las
Vegas, Raleigh, N.C., California’s Inland Empire and Sacramento, Calif., were
last month’s year-over-year rent growth leaders.

The steady growth
trend prompted Oregon, New York and California to enact rent control measures
over the past year; several other states are considering them. The report says
“these laws are likely to prove counterproductive over time” by increasing cost
burdens on markets’ new renters, limiting development of new stock and imposing
disincentives for capital improvements. “The U.S. needs more units built, but
rent control moves the needle in the opposite direction.”

Get insight about
demand, supply, rent control legislation and other factors from the Yardi
Matrix multifamily national report for October 2019.

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, industrial, office
and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

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 on
how Yardi is Energized for Tomorrow, visit yardi.com.