Multifamily rent growth continues to buck the seasonal norms, with the average U.S. asking rent increasing $10 in February to a record-high $1,628, reported Yardi Matrix. Year-over-year rent growth increased 15.4% last month, a new peak and up a full percentage point from January.
Of the top 30 metros tracked by Yardi Matrix, 90% saw double-digit, year-over-year rent jumps. Miami tops the list, with a 27% increase in year-over-year rents through February, followed by Tampa and Orlando, Florida; Phoenix; and Las Vegas. Outlier markets also showed significant growth, with San Francisco seeing a 9% increase and Kansas City, Missouri, experiencing an 8.1% bump.
According to Yardi Matrix, the demand that created last year’s rent growth has not been satisfied, with national occupancy rates up 120 basis points year over year. In January 2021, occupancy rates were 95% or higher in only 13 of Yardi Matrix’s top 30 markets; however, one year later, only two are below that level. Occupancy growth is strong in the Sun Belt markets in Florida and Texas, but also in gateway markets that lost renters during the pandemic.
