Top U.S. Multifamily Rent Growth Markets — Q2 2021
After falling for four consecutive quarters, Q2 2021 U.S. multifamily rent growth finally turned positive. According to Moody’s Analytics REIS, overall effective rent increased 0.6% during the quarter, although it remained down 3.6% year over year. At the market level, the brightest spots for rent growth continued to be in the Sun Belt, and particularly in the Southwest.
Tucson moved into the top spot this quarter, with effective rents rising 3.8% year over year in The Old Pueblo. Although the local economy has yet to recover from the recession, the housing market has been thriving, with surging home prices and new home construction.
The San Bernardino/Riverside market slipped one spot to No. 2 on the list, posting a 3.5% annual growth rate. The area continues to attract Southern California residents seeking affordable housing options.
The No. 3 spot went to Las Vegas, rising 3.4%. This market was severely hit by the recession, given its dependence on the leisure and hospitality sector, and the recovery of the local economy has been varied. The housing market has been one of the hottest in the country, although payroll employment remains more than 8% below pre-pandemic levels.
Another Arizona metro, Phoenix, finished among the top markets, with a 3.0% growth rate. The Valley of the Sun continues to benefit from a shining housing market and positive in-migration trends, similar to most of the cities on this list.
Here’s a look at the top U.S. multifamily rent growth markets for Q2 2021, with data provided by Moody’s Analytics REIS.