Oakland, Portland, Denver Metros Retain Top 3 Spots for Effective Rent Growth
DALLAS, TX--(Marketwired - July 16, 2015) - June 2015's national annual effective rent growth rate of 5.1% represented a 47-month high for the national apartment market and continued a streak of 5.0%-plus rent growth that is the longest in at least six years, according to Axiometrics, the leader in apartment and student housing research and analysis.
"Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market," said Stephanie McCleskey, Axiometrics vice president of research. "The demand for apartments is still strong, despite the record number of new units being delivered this year."
Occupancy Rates Steady in June
The occupancy rate remained at 95.3% in June -- though the latest rate was a 2-bps increase from May when extended to two decimal points (95.30% from 95.28%).
"Tight occupancy is why landlords can push rents higher," McCleskey said. "Axiometrics considers a market or property essentially full at 95% occupancy, so there are just not that many apartments available. There's a reason for all the new supply: The market is still playing catch-up for all the apartments not built during the recession."
Top 17 Metros Relatively Steady
After some significant changes in May, the top 17 markets for effective rent growth were relatively steady in June.
Annual Effective Rent Growth | Occupancy Rate | Revenue Growth | ||||||
Rank | MSA | 14-Jun | 15-Jun | 14-Jun | 15-Jun | 14-Jun | 15-Jun | |
1 | Oakland, CA | 9.6% | 14.4% | 96.8% | 96.5% | 9.9% | 14.1% | |
2 | Portland, OR | 6.0% | 13.6% | 96.2% | 97.1% | 6.0% | 14.6% | |
3 | Denver, CO | 8.6% | 10.9% | 96.1% | 95.9% | 9.0% | 10.7% | |
4 | San Jose, CA | 9.1% | 10.4% | 97.0% | 97.0% | 9.3% | 10.4% | |
5 | Sacramento, CA | 8.3% | 9.8% | 96.2% | 95.9% | 10.3% | 9.4% | |
6 | San Francisco, CA | 6.7% | 9.1% | 96.5% | 96.3% | 7.4% | 9.0% | |
7 | Riverside, CA | 4.3% | 7.6% | 95.2% | 95.7% | 4.9% | 8.1% | |
8 | Seattle, WA | 7.0% | 7.5% | 96.6% | 96.2% | 7.3% | 7.2% | |
9 | Atlanta, GA | 7.3% | 7.3% | 94.2% | 94.8% | 7.9% | 7.9% | |
10 | Phoenix, AZ | 4.5% | 7.1% | 93.5% | 94.5% | 5.0% | 8.0% | |
11 | Nashville, TN | 5.6% | 6.8% | 96.0% | 96.0% | 5.8% | 6.7% | |
12 | Las Vegas, NV | 3.2% | 6.7% | 93.4% | 94.5% | 4.4% | 7.8% | |
13 | Dallas, TX | 4.0% | 6.4% | 95.0% | 95.6% | 4.0% | 7.0% | |
14 | Orlando, FL | 4.5% | 6.3% | 95.1% | 95.7% | 4.9% | 6.9% | |
15 | Fort Worth, TX | 4.5% | 6.2% | 95.1% | 95.9% | 4.8% | 7.0% | |
16 | Fort Lauderdale, FL | 5.0% | 6.2% | 95.7% | 95.8% | 5.6% | 6.3% | |
17 | Los Angeles, CA | 4.3% | 6.2% | 95.8% | 95.9% | 5.1% | 6.3% | |
National | 3.7% | 5.1% | 95.1% | 95.4% | 4.0% | 5.4% | ||
Selected Other Markets | ||||||||
3 | Naples, FL | 10.5% | 11.9% | 97.2% | 96.5% | 10.0% | 11.2% | |
4 | Cape Coral, FL | 8.4% | 11.0% | 95.6% | 96.4% | 9.7% | 11.8% | |
5 | Santa Rosa, CA | 11.3% | 10.9% | 97.3% | 97.0% | 11.5% | 10.5% | |
9 | Palm Bay, FL | 4.9% | 9.7% | 94.8% | 95.8% | 5.5% | 10.8% | |
10 | Salinas, CA | 4.3% | 9.5% | 97.5% | 98.4% | 5.6% | 10.3% | |
*Rank is based on annual effective rent growth in June 2015 for Axiometrics' Top 50 Markets. Selected other markets are based on Axiometrics' Top 121 Markets. Axio tracks properties in more than 450 MSAs throughout the country. | ||||||||
Source: Axiometrics Inc. |
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About Axiometrics
Axiometrics' specialty is monitoring the apartment and student housing markets, providing an in-depth view of volatile market trends. Axiometrics' granular data-collection methods and enlightening analysis help clients make profitable -- and intelligent -- decisions. To learn more, visit www.axiometrics.com, follow @Axiometrics or call 214-953-2242.
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Contact:
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ross@mpdventures.com