Since December 2018, rent appreciation has steadily increased, indicating this growth will not slow down any time soon. Key fundamentals such as higher national wages, job growth, and unemployment rates at a 50-year low have all contributed to the increasing popularity of renting, thus feeding into rental rate growth. Although majority of multifamily developments as of late consist of 4 & 5 star assets, the occupancy rate in the U.S. is at 95 percent, therefore we can infer that these new projects are being filled. The major metros that are experiencing this the most all share common qualities, including:
- Booming economies
- Influx of new, young renters
- Relocating or expanding companies
To read which metros are experiencing the highest rental growth and how it is affecting their economies, click here.