MULTI-FAMILY RESEARCH BRIEF

Key Takeaways – National

Class C rent growth continued to outperform Class A and Class B. Class C assets experienced a 3.5% year-over-year gain in Q1.

While favorable, Class C’s growth rate has moderated from 2018.

Class A rent growth (2.8%) slightly outpaced that of Class B (2.5%).

However, Class B vacancy is still lower than Class A: 4.6% vs. 5.1%. Class C continued to have the lowest vacancy at 3.9%.)

The average Class A rent was $612 higher than Class B. The Q1 difference is one of the largest in history. The peak was $623 reached in Q2 2018.

Key Takeaways – Metro

Rent increases were higher for Class A product than Class B in 36 markets (slightly more than half of the 66 metros tracked). This is notably different than six months ago when Class B rent growth was higher than Class A in about two-thirds of U.S. markets.

Las Vegas and Phoenix experienced the best Class A rental increases. The leaderboard included many tertiary markets including Dayton, Birmingham, Memphis, and Greensboro, suggesting possible investment strategy for these smaller metros.

For Class B assets, Tucson and Phoenix experienced the most rent growth. Another 11 markets had annual gains of over 5% and six markets were in the 4%-to-5% range.

Sacramento and Tucson were the metro leaders for Class C assets, followed by El Paso and Los Angeles. Orlando, Seattle, Long Island, Las Vegas and Nashville also had increases over 6%.

Leave a comment

Our mission is to acquire sound, profitable real estate investments and manage them to the benefit of those we serve better than anyone in our industry.

Our vision is to serve our employees, investors, customers, and communities by Sharing the Good Life.

MC Investments © 2020 All rights reserved Design by MK Marketing.