Multifamily rents across the country, and throughout the Midwest, rebounded in a big way in June, rising $12 to an average of $1,349, according to the latest rent survey by Yardi Matrix.
On a year-over-year basis, apartment rents were up 2.7 percent across the country.
June was a big month for apartment rents; Yardi Matrix reported that this was the first time since January of 2016 when the rate of rental growth increased when compared to the previous month.
Yardi Matrix researchers said the strong June suggests that there is still some growth left in the multifamily market. It should also ease the fears that the multifamily market, because of a long period where the rate of rent growth was falling, was headed for a sustained correction.
The company, though, did warn that the rate of rent growth should taper off throughout the year. That’s because more than 360,000 new apartment units are scheduled to come online this year.
The country’s overall multifamily occupancy rate stood at 95.6 percent in June. That is unchanged from May.
In the Midwest, Minneapolis/St. Paul saw the largest year-over-year growth in multifamily rents in June, 4.4 percent. In Indianapolis, year-over-year apartment rents rose 2.7 percent, while they jumped 1.8 percent in Nashville. Year-over-year rents jumped 2.1 percent in Kansas City and 1.5 percent in Chicago.