Renewal Rent Growth Hits Peak This Cycle

June’s renewal rent growth and new lease rent growth are the highest seen in this cycle, according to MPF Research. Renewal lease rent growth was up 5.2% in June, meaning renters on average paid 5.2% more than they did previously to stay in the same units. Several markets in which Hamilton Zanze is invested came in the top 20 nationally for renewal rent growth:

#2 Portland: 8.2%
#5 Denver: 7.5%
#6 Seattle: 7.4%
#9 Phoenix: 6.4%
#13 Las Vegas: 5.4%
#16 Houston: 5.3%
#17 Dallas: 5.2%

The Texas market rankings are significant, as they indicated that apartment owners are not losing renters despite high supply, inspiring operators to increase rents.

Nationally, 50.2% of renters with expiring leases chose to renew, a bit higher than normal for June but down slightly year-over-year. Overall, renewal rent growth rates were much higher than pre-recession averages, despite all the rent growth seen in this cycle and all the new supply that has come online in recent years.

Read more at PropertyManagementInsider.com