Apartments.com Publishes April 2022 Rent Growth Report
Today, Apartments.com – a leading national online marketplace owned by CoStar Group – released an in-depth look at national multifamily rent growth trends for April 2022 backed by analyst observations.
“Overall, April saw a slight deceleration of rent growth both nationally and at the market level,” said Jay Lybik, National Director of Multifamily Analytics, CoStar Group. “However, in our minds, the bigger takeaway from this report is the number of formerly high-flying rental markets experiencing notable decelerations in rent growth as the month closed.”
SUNBELT MARKETS HOLD STRONG
Sunbelt markets continue to dominate the top rent growth markets, with the top 10 markets in terms of year over year rent growth located in the Sunbelt. This includes five markets in Florida, two in North Carolina along with Las Vegas, Nashville and Austin.
STAGGERING RENT GROWTH SLOWS
The number of markets witnessing rent growth above 20% has declined from eight at the end of 2021 to just four in April, indicating a tempering of rent growth.
This tempering can be felt across the board. Despite the thriving performance from sunbelt markets, Phoenix, in particular, has experienced a dramatic slowing in rent growth. The report finds that year-over-year asking rents fell from 22% in the fourth quarter of 2021 to 15.6% at the end of April 2022.
In 2021, Atlanta and Orange County, California, experienced significant growth, often landing among the top 10 growing markets. In April, both experienced a significant slowing, with Atlanta’s rent growth dropping 370 basis points and Orange County down 210 basis points in the new year. San Francisco experienced a drop of 2%, down to 6.5% in April 2022 from 8.5% at the close of 2021.
MONTH-OVER-MONTH GROWTH TELLS A SLIGHTLY DIFFERENT STORY
While year-over-year findings show a slowing of rent growth on a national level, month-over-month findings show the national average rent growing by 0.8%.
The top 10 performing markets are dispersed across the country at the month-over-month level, a stark contrast compared to the sunbelt market concentration seen in the year-over-year rent growth metrics.
Lybik continued: “While the sunbelt markets are still well-represented among the top 10 – with Charlotte, N.C., notably leading the monthly numbers – we are seeing a handful of other regions holding strong on a monthly level. Midwest markets like Columbus, Ohio, and Indianapolis, and gateway cities like Boston and Seattle are also experiencing strong upticks in rents over the past 30 days. Heading into the spring leasing season, we will be watching these markets closely to see how they perform.”
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