In June 2018, the average multifamily rent was at an all-time high $1,405. In August, it rose another $7, reaching $1,412. Of course, in some cities, rents are much higher than that – with the Manhattan average coming it at a whopping $4,119!
Keep reading for more insights from the August 2018 Multifamily National Report.
Rents keep going up
Rents have grown gradually all year and have reached record highs seven months in a row. In fact, rents have risen steadily since September 2017.
At this point, you may be wondering just how long this trend can keep up. Good news on that front! According to the data compiled by our friends at Yardi Matrix, future rent growth is likely, even in the face of hundreds of thousands of new units hitting the market this year.
“Combined with other factors, such as the secular increase in the number of renter-age young adults and urban migration, the growth of new renter households seems poised to continue.”
Rent increases tied to employment increases
Nationally, rent growth remains closely tied to both housing supply and local job markets. Of the 30 major metros in surveyed in this report, the 10 with the highest rent growth saw employment increase (2.6%) more than supply (1.8%) over the last year.
Top 5 cities with biggest year-over-year rent growth
Do you own multifamily rental properties in any of these cities? If so, you might want to make sure your rents are keeping up.
- Orlando (6.7%)
- Las Vegas (5.7%)
- Inland Empire (5.4%)
- Phoenix (5.3%)
- Tampa (4.8%)
Make sure collecting rent isn’t costing you $$$
Even if rent in your area is up, you’re losing money every month if you’re not collecting rent online. Did you know that it’s estimated that receiving paper checks costs you $1.57? It’s five times more expensive than receiving an ACH payment online.
Need more convincing? Check out the five surprising benefits of online rent payments.