Top Ten Apartment Market Rent Growth Leaders for Third Quarter 2013 [Infographic]
Yesterday, MPF Research released preliminary numbers for the U.S. apartment market performance during the third quarter of 2013. With the existing stock full and new completions leasing rapidly, rents climb 1.2 percent quarterly and 3.2 percent annually. Additionally, occupancy in the nation’s 100 largest metros averaged 95.4 percent during the third quarter.
Overall, another strong and sustained performance for the U.S. apartment market.
But everybody loves a top 10 list, so without further ado here are the top 10 apartment markets with the best annual rent growth as of third quarter 2013.
Top 10 Rent Growth Leaders Analysis
Among large individual metros, Oakland moved into the #1 position on the list of the country’s annual rent growth leaders as of the third quarter. Pricing for new leases grew 7.9 percent during the past year. Denver-Boulder’s ranking also improved, as the market’s 6.8 percent annual rent growth pace was the second-best nationally.
While San Francisco slipped from its previous top spot for annual rent growth, pricing power remained strong with rates up 6.6 percent on an annual basis. The next three positions also went to metros in the red-hot Pacific Northwest region, as rents climbed 5.9 percent in both San Jose and the Seattle-Tacoma area and 5.7 percent in Portland.
Miami returned to the list of annual rent growth leaders for the first time in several years during the third quarter, as pricing improved 5.0 percent on an annual basis. The yearly growth pace was 4.8 percent in Houston and 4.2 percent in both Austin and Nashville.
Momentum Returns to Southern California Apartment Markets
Metros that just missed the cut-off point for the best-performers list included Fort Worth, West Palm Beach and the southern California trio of Orange County, San Diego and Los Angeles.
“Improving performances in southern California are one of the key regional story lines for the quarter,” according to MPF Research vice president Willett. “Annual rent growth in much of the area now is above the national norm, after these markets ranked as middle-of-the-pack performers a year ago and significant laggards two years ago.”