Occupancy Surpasses 95% After Two Quarters Below; Sacramento Shows Highest Rent Growth Among Top 50 Metros
DALLAS, TX--(Marketwired - June 30, 2016) - The national apartment market continued its moderation trend in the second quarter of 2016 as had been forecasted, according to early end-of-quarter apartment data from Axiometrics, a provider of comprehensive apartment and student housing market intelligence.
Axiometrics' research showed:
QUARTERLY EFFECTIVE RENT GROWTH | ||||
Quarter | 2013 | 2014 | 2015 | 2016 |
First | 0.4% | 0.5% | 0.9% | 0.5% |
Second | 2.1% | 2.7% | 2.7% | 2.3% |
Third | 1.2% | 1.7% | 1.8% | |
Fourth | -0.9% | -0.3% | -0.8% | |
"As is the norm, quarterly rent growth was significantly stronger in the second quarter," said Jay Denton, Axiometrics' Senior Vice President of Analytics. "New graduates are heading into the workforce needing a place to live, and renter families want to get settled in time for the next school year. Annual rent growth is moderating as delivery of new supply peaks and job gains are starting to decline."
In other metrics:
Sacramento Retains Rent-Growth Lead
Sacramento had the highest annual effective rent growth among Axiometrics' top 50 markets for the second straight quarter. California's capital recorded 10.4% growth, some 250 bps ahead of No. 2 Seattle (7.9%).
Phoenix surged to No. 3, while Portland and Riverside rounded out the top five. California placed six metros in the second-quarter top 25, while Florida placed four and Texas placed three.
The top 25 Metropolitan Statistical Areas (MSA) or Metropolitan Divisions -- among Axiometrics' top 50 markets with the most apartments -- reported the following results:
Top 25 Markets by Annual Effective Rent Growth for 2Q16 | |
MSA/Metropolitan Division | Annual Effective Rent Growth |
Sacramento-Roseville-Arden-Arcade, CA | 10.4% |
Seattle-Bellevue-Everett, WA | 7.9% |
Phoenix-Mesa-Scottsdale, AZ | 7.6% |
Portland-Vancouver-Hillsboro, OR-WA | 7.4% |
Riverside-San Bernardino-Ontario, CA | 7.3% |
Fort Worth-Arlington, TX | 6.7% |
Tampa-St. Petersburg-Clearwater, FL | 6.6% |
Nashville-Davidson-Murfreesboro-Franklin, TN | 6.3% |
Orlando-Kissimmee-Sanford, FL | 6.3% |
Salt Lake City, UT | 6.3% |
Las Vegas-Henderson-Paradise, NV | 6.3% |
San Diego-Carlsbad, CA | 6.3% |
West Palm Beach-Boca Raton-Delray Beach, FL | 5.8% |
Atlanta-Sandy Springs-Roswell, GA | 5.8% |
Dallas-Plano-Irving, TX | 5.5% |
Oakland-Hayward-Berkeley, CA | 5.2% |
Los Angeles-Long Beach-Glendale, CA | 5.0% |
Charlotte-Concord-Gastonia, NC-SC | 4.7% |
Anaheim-Santa Ana-Irvine, CA | 4.7% |
Charleston-North Charleston, SC | 4.6% |
Austin-Round Rock, TX | 4.4% |
Jacksonville, FL | 4.3% |
Warren-Troy-Farmington Hills, MI | 4.3% |
Raleigh, NC | 4.2% |
Denver-Aurora-Lakewood, CO | 4.0% |
National | 3.7% |
Top 25 Markets by Quarterly Effective Rent Growth for 2Q16 | |
MSA/Metropolitan Division | Quarterly Effective Rent Growth |
Seattle-Bellevue-Everett, WA | 5.4% |
Sacramento-Roseville-Arden-Arcade, CA | 5.3% |
Boston-Cambridge-Newton, MA-NH | 4.3% |
Charleston-North Charleston, SC | 4.1% |
Denver-Aurora-Lakewood, CO | 4.0% |
Portland-Vancouver-Hillsboro, OR-WA | 3.8% |
Chicago-Naperville-Arlington Heights, IL | 3.6% |
Las Vegas-Henderson-Paradise, NV | 3.5% |
Fort Worth-Arlington, TX | 3.2% |
San Diego-Carlsbad, CA | 3.2% |
Riverside-San Bernardino-Ontario, CA | 3.2% |
Richmond, VA | 3.2% |
Raleigh, NC | 3.1% |
Oakland-Hayward-Berkeley, CA | 3.1% |
Washington-Arlington-Alexandria, DC-VA-MD-WV | 3.0% |
Hartford-West Hartford-East Hartford, CT | 2.9% |
Phoenix-Mesa-Scottsdale, AZ | 2.8% |
Nashville-Davidson-Murfreesboro-Franklin, TN | 2.7% |
St. Louis, MO-IL | 2.7% |
Minneapolis-St. Paul-Bloomington, MN-WI | 2.7% |
Silver Spring-Frederick-Rockville, MD | 2.6% |
Baltimore-Columbia-Towson, MD | 2.6% |
Charlotte-Concord-Gastonia, NC-SC | 2.5% |
Memphis, TN-MS-AR | 2.4% |
Dallas-Plano-Irving, TX | 2.4% |
National | 2.3% |
Top 25 Markets by Occupancy for 2Q16 | ||
MSA/Metropolitan Division | 2Q16 Occupancy | Change From 1Q16 |
Nassau County-Suffolk County, NY | 97.0% | 0.4% |
New York-Jersey City-White Plains, NY-NJ | 96.9% | 0.4% |
Minneapolis-St. Paul-Bloomington, MN-WI | 96.8% | 1.1% |
Warren-Troy-Farmington Hills, MI | 96.7% | 0.7% |
Sacramento-Roseville-Arden-Arcade, CA | 96.4% | 0.4% |
Oakland-Hayward-Berkeley, CA | 96.3% | 0.3% |
Seattle-Bellevue-Everett, WA | 96.1% | 0.6% |
Salt Lake City, UT | 96.1% | 0.2% |
Nashville-Davidson-Murfreesboro-Franklin, TN | 96.1% | 0.3% |
San Diego-Carlsbad, CA | 96.0% | 0.3% |
Anaheim-Santa Ana-Irvine, CA | 96.0% | 0.2% |
Columbus, OH | 95.9% | 0.7% |
Los Angeles-Long Beach-Glendale, CA | 95.8% | -0.5% |
Charlotte-Concord-Gastonia, NC-SC | 95.8% | 0.6% |
Orlando-Kissimmee-Sanford, FL | 95.8% | 0.1% |
San Francisco-Redwood City-South San Francisco, CA | 95.8% | 0.2% |
Boston-Cambridge-Newton, MA-NH | 95.8% | 0.4% |
Fort Worth-Arlington, TX | 95.7% | 0.6% |
Dallas-Plano-Irving, TX | 95.7% | 0.3% |
Washington-Arlington-Alexandria, DC-VA-MD-WV | 95.7% | 0.8% |
Tampa-St. Petersburg-Clearwater, FL | 95.7% | 0.2% |
Kansas City, MO-KS | 95.6% | 0.6% |
Riverside-San Bernardino-Ontario, CA | 95.6% | 0.2% |
Portland-Vancouver-Hillsboro, OR-WA | 95.6% | 0.2% |
Chicago-Naperville-Arlington Heights, IL | 95.5% | 1.0% |
National | 95.2% | 0.4% |
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 on LinkedIn, or call 214-953-2242.
Contact Information:
Contact:
Ross Coulter
214-394-5538
ross@mpdventures.com