Top Ten Apartment Market Rent Growth Leaders for Second Quarter 2013 [Infographic]
Earlier this month, MPF Research released highlights for the apartment market’s performance in the second quarter of 2013 and reported strong demand and accelerating rent growth.
When MPF releases these quarterly numbers I always look at the leader board to see which metro secures the top spot for rent growth. During the past few quarters, the top spot has been held by one of the Bay Area metros.
Did a Bay Area market once again claim the title as top annual rent growth leader? Did a metro from the Pacific Northwest challenge for the top spot? Let’s have a look.
Top 10 Rent Growth Leaders Analysis
Among large individual metros, San Francisco ranks as the country’s rent growth leader by a fairly large margin. Pricing there rose 7.8 percent during the past year, taking average monthly rent to $2,498. Annual rent growth came in at 6 percent to 6.9 percent in Oakland, Denver-Boulder and Seattle-Tacoma, and prices climbed 5 percent in San Jose.
Markets registering annual apartment rent growth of 4 percent or a little more were Portland, Houston, Austin and West Palm Beach. Fort Worth completed the top 10 list of the nation’s biggest metros with the fastest rent growth: rates there jumped 3.6 percent.
Metros that just missed the cut-off point for the best-performers list included Chicago, Raleigh-Durham, Columbus and Miami.
New York Apartment Market Curiously Absent
Notably missing from the top-performing group as of second quarter was New York. In fact, the metro registered slight rent cuts during the year-ending second quarter, with pricing down 0.6 percent. Still, New York’s average monthly rents are by far the highest in the country at $3,269, and its occupancy rate of 97.7 percent is the tightest anywhere. According to MPF Research, the metro is probably just getting a brief, minor correction in rent levels, after owners and operators got perhaps a little too aggressive when pushing prices throughout 2011 and the first half of 2012.
What’s your take? Are you surprised by the apartment markets appearing on this rent growth list? What about those that didn’t make the list? How was the rent growth on your apartment portfolio?