SANTA BARBARA, CA—2016 promises to be another year of above-average rent growth in apartments, just not at the accelerated pace the sector has experienced for the past couple of years. Yardi Matrix is predicting "solid" increases for the year, "without the froth of 2015."
Specifically, the latest Yardi Matrix report projects 4.6% rent growth nationally this year, "led by many of the hot markets that produced outsize increases in 2015." Although the forecast represents a deceleration from the 6.5% gain recorded in the year just past, "rent growth will, nonetheless, outpace the eight-year average of 2.8%, satisfying most property owners."
As a case in point, the double-digit year-over-year rent growth winner among US metro areas in '15, Portland, OR, dips down into high single-digit territory in Yardi's forecast for this year. It is still in the top three at 9.2% projected rent growth, along with two other cities that topped the rankings for '15: also Denver, with 11.2% projected growth; and San Francisco, with 11%.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
