Small Markets Showing Big Moves on Apartment Rents

Heavily active apartment-market movers aside from most-written areas such as Miami were an interesting bunch, according to a new research analysis by RealPage.

Consider that small coastal apartment markets such as those in Florida and California rank alongside the nation’s largest metros for nation-leading change in monthly rents in the past five years.

These smaller markets have an existing unit base of between 28,900 units and 53,400 units, according to September data from RealPage Market Analytics.

Naples’ apartment market – located a few hours away from Miami on Florida’s Gulf Coast – sported almost as much growth as Miami, coming in just $4 shorter at $870.

Naples also ranked No. 2 for percentage growth, with a five-year increase of 64.2%.

It was topped only by Fayetteville-Springdale-Rogers, Ark-Mo., which had a faster growth pace during that time, but a lesser price increase at $455.

Cape Coral was the other small Florida market on the list, with a five-year rent growth of $739.

Two small California markets – Santa Maria and Oxnard – were up by $739 and $859. Santa Maria’s growth was very close to San Diego’s upturn of $856 while Oxnard’s pace matched that of nearby Anaheim.

Trenton also emerged from nearby New York City’s shadow during that time to show a $765 average hike compared to its neighbor’s $837 elevation.

On a more condensed timeframe, Zumper’s recent rent report had several smallish to midsize markets posting between 4% and 6% rent hikes YoY for October.

Anchorage is up the most at $1,390 – a 6% spike. New Haven ($1,640, just under 6%) is next among the top risers followed by Des Moines ($940, 5.5%) and Baton Rouge ($960, 4.25%).

Nationally, Zumper has the median one-bedroom at $1,505, which is down 0.4 percent over the prior month, the most significant month-over-month decline it has seen this year.