Gateway metros have posted the biggest increases in occupancy in recent months, with New York, Los Angeles and Chicago challenging the Sun Belt and Dallas-Fort Worth, Houston and Phoenix.
Rents are above pre-pandemic norms in cities like Chicago, which saw a 17.6% uptick in early 2022,as well as Boston, Washington, D.C., Los Angeles and parts of the Bay Area, all of which posted year-over-year pricing increases in the 10% to 18% range, according to Marcus & Millichap.
"Rent growth over the past year more than countered earlier cuts and pushed pricing to new highs in most gateway market locations," the firm notes, adding that first quarter rents are 12 percent to 13 percent above early 2020 pre-pandemic prices in Los Angeles and Chicago.
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