Richmond, San Jose Top List for Apartment Revenue Growth

Taking a cue from robust local income growth, Richmond, Va., and San Jose, Calif., are forecast to be the rent-growth leaders in 2024, both rising by 4%, according to a new report from RealPage.

Such local prosperity often drives the steeper rental price increases, according to Arben Skivjani, a Deputy Chief Economist and Director of Forecasting for RealPage.

Close behind those two are West Palm Beach (3.9%) and Anaheim, Pittsburgh, and San Francisco, each above 3.4%. Columbus, Riverside, Baltimore, and Philadelphia are expected to rise by 3.2%.

“The economy is constantly changing, affecting the housing industry in many ways,” Skivjani said in the report. “While inflation has recently decreased, it remains worrying as consumers, investors and the Federal Reserve attempt to control rising prices – which has proven to be a very difficult task.

Meanwhile, the job market appears steady, and consumers have been fairly resilient. Still, these external forces impact key indicators across multifamily housing markets.

Dallas, Phoenix, and Austin (in that order) top RealPage’s market lists for highest demand and most supply.

In Dallas, nearly 38,000 units are underway – easily exceeding the 33,362 in second-place Phoenix. Other top construction markets include Austin, Denver, Charlotte, and Los Angeles, each with over 20,000 new rentals delivering in 2024.

Completing RealPage’s top 10 are Atlanta, Houston and Raleigh/Durham, which will each receive more than 20,000 new units next year.

For demand, Dallas, Phoenix, and Austin again rank highly for attracting residents and jobs, allowing apartment demand to remain strong through 2024.

“Our most recent forecast model shows Dallas absorbing almost 37,000 units, while fast-growing markets like Charlotte, New York and Denver will also see strong multifamily demand,” Skivjani said.

“With populations and jobs still growing in many of these market, tight conditions will likely continue.”

Newark, New York City, Boston, and Riverside are expected to maintain the strongest occupancy, all exceeding 96%.

“Unsurprisingly, these markets all have limited housing supply and dense populations, allowing the property operators to fill units,” Skivjani said.

RealPage also expects occupancy rates over 96% in Los Angeles, San Diego, and Anaheim.