Most markets see upward movement, including gateway cities, but have a long road ahead
SANTA BARBARA, Calif., July 1, 2021 – A special multifamily report from Yardi® Matrix details the varying ways in which the post-pandemic multifamily recovery will be determined by location.
“Most markets see an upward revision in the near term as the vaccine rollout proceeds faster than expected and more states and cities begin to reopen,” states the report. “However, gateway cities are still lagging somewhat in their rebound and may not hit their full growth potential until 2022.”
With an increase of 0.88% over April, May 2021 saw the largest month-to-month average percentage rent increase since Yardi Matrix started collecting rent data. But the outlook is tempered by lower-than-expected job gains and inflation concerns.
Into the fall, rent gains are likely to continue as vaccines continue and workplaces, businesses and cities fully reopen. But that growth may temper due to typical seasonal factors – renters are less likely to relocate in the winter months.
Gateway markets are experiencing “pent-up demand for the amenities that cities have to offer, and many markets will see record or near-record year-over-year growth by the end of the year,” analysts expect. “However, much of the gains in 2021 will merely be making up lost ground from 2020.”
The largest upward adjustments made to Matrix forecasts this month occurred in smaller, affordable metros. Reno, the Tri-Cities, Macon, Harrisburg and Omaha top the list with significant positive projections. As for larger metros, Phoenix should see close to double-digit growth, while suburban Atlanta, Tampa, Las Vegas, Portland and Austin are in a position to exceed 5% year-over-year growth.
Read the full Multifamily Rent Forecast Report.
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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