09 Jun Demand And Rent Growth Continue to Increase Nationwide
Data Courtesy of Yardi Matrix, source link here.
The average US multifamily asking rent rose $19 in May to reach $1,680, an all-time high. Rent growth rose 10% over the last year in 26 of the top 30 metros. Despite the questioning of our decelerating economy and rising gas prices, the multifamily rents have continued to surge (3% over the past 3 months). With this, there are signs of possible cooling due to weakening occupancy rates in some high-growth metros such as Las Vegas (-1.1%) and Phoenix and Sacramento (-0.7%).
When looking at these graphs it shows San Diego’s multifamily rent growth increased a little over 16% this year while there was practically no growth in occupancy from this year. This could be due to there being not as much new San Diego multifamily inventory readily available. It is important to note that while there isn’t much growth in occupancy, it is not in the negatives like many other large cities. This can show a possible slow down in the near future for San Diego but it is still doing better than many other large markets currently.
Market Rent Growth by Asset Class:
There was a huge spike as seen from 2021 to 2022 as far as San Diego multifamily rents go. This was mainly caused by the ever increasing interest rates and inflation. It is said that the multifamily sector will likely continue to increase in price due to the strong demand even though the economy may be taking a downturn in the near future.