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Denver/Boulder Has Highest Rent Growth in Q1
Effective rents for the Denver/Boulder market grew 10.5% annually in Q1, placing it first for annual rent growth nationwide, according to MPF Research. However, new product coming to the market is expected to put pressure on rent growth for top-tier product over the next several quarters.
Although the San Francisco Bay Area has dominated the U.S. apartment market for rent growth in recent years, both San Francisco and Oakland came in second with 10.2% annual rent growth while San Jose recorded 9.3% annual growth.
Portland came in fifth with 7.9% annual rent growth. MPF analysts forecast 52% more units will be completed in the metro in 2015 compared to last year, but the construction is spread out and is not expected to meaningfully dampen rent growth.
The Las Vegas and Seattle/Tacoma markets also saw notable change. While economic recovery in Las Vegas has been slow, annual rent growth was solid at 5.7%, supported by strong job gains and healthy apartment occupancy. Seattle’s rents grew by 5.3% year-over-year in Q1 and did not make the top 10 for the first time in several years, likely due to significant new product in the urban core flattening high-end rents.
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