December 2018 National Apartments Market Update

Yardi Matrix released their December 2018 Multifamily National Report. As usual, it has some tasty morsels for real estate investors to snack on, including:

• RENT GROWTH: National average rents have recently slowed down in terms of growth/appreciation. Year over year, they have increased 3.2%. However, that occurred earlier in the year and rent growth has been flat since the summer. Nonetheless, this can be at least partly attributed to normal fall/winter seasonality when demand is typically lower.
• 2019 PREDICTION: Nonetheless, Yardi predicts another year of around 3% rent growth nationally [Remember that local markets can vary up or down significantly from national averages]
• LEADING MARKETS: Rent growth was led by secondary markets and locations in the southwest, west, and south regions
• LONG RUN: Rents have increased for the past 8+ years, totaling a 31% increase since January 2011
• CONSTRAINTS: Continuing construction and supply will likely be a drag on larger rent growth in many markets
• DRIVERS: Prime drivers for this strong and long run: 8.9 million new households in that time, typical renter-age individuals continuing to grow in past plus next few years, job growth, and social factors such as student loan debt limiting home buyers, families as renters longer, and retirees downsizing/renting more