Top 10 Markets with Highest Rent Increases During April 2020

[Ellie Perlman]

As we move through months of stay-at-home orders, there continues to be a buzz of data gathering and analysis happening in real time and with sharp focus. While 38.6 million applicants have filed for unemployment, overall April rent collections proved strong nonetheless. According to the National Multifamily Housing Council Rent Payment Tracker, collections reflected an encouraging 96.6% compared to the previous month.

While there is still much to be seen as we move ahead into June and gather final data on May, overall market impacts have varied and will continue to do so as some of the restrictions are being lifted. Nationally, a downward trend of rent increases month over month for April was -0.5%, one of the most significant drops since the Great Recession. This is also evident in the year-over-year increase of April being only 1.6%.

Yet, some markets have still remained strong, particularly when focusing on the niche demographic of what's known in the industry as "renters by necessity". Renters by necessity are generally housed in Class B and C properties, as they provide basic housing needs and affordability. Some of the sharpest declines in rent growth were seen (and are anticipated to continue for a time) in Class A luxury properties, while many Americans are likely choosing to remain conservative with expenses until a time of stabilization is re-captured.

The following list shows the top 10 markets with the lowest declines, and for some even continued gains, in rent increases for renters by necessity. However, there are variabilities amongst properties within a market of course. For example, while Atlanta is showing an increase of month-over-month rent growth of only 0.08%, we are seeing an average of 18% rent increases during May 2020 in some of our Atlanta properties.

10. Baltimore, MD

Overall Population: 590,479

Renter Occupied Households: 47%

Month-Over-Month Rent Growth: -0.25%

9. Twin Cities, MN

Overall Population: 437,069

Renter Occupied Households: 55%

Month-Over-Month Rent Growth: -0.19%

8. Las Vegas, NV

Overall Population: 662,000

Renter Occupied Households: 37%

Month-Over-Month Rent Growth: -0.1%

7. Phoenix, AZ

Overall Population: 1,703,078

Renter Occupied Households: 36%

Month-Over-Month Rent Growth: -0.1%

6. Philadelphia, PA

Overall Population: 1,591,800

Renter Occupied Households: 45%

Month-Over-Month Rent Growth: -0.07%

5. Dallas, TX

Overall Population: 1,382,267

Renter Occupied Households: 42%

Month-Over-Month Rent Growth: 0%

4. Atlanta, GA

Overall Population: 523,738

Renter Occupied Households: 57%

Month-Over-Month Rent Growth: 0.08%

3. Houston, TX

Overall Population: 2,340,888

Renter Occupied Households: 39%

Month-Over-Month Rent Growth: 0.1%

2. Sacramento, CA

Overall Population: 521,769

Renter Occupied Households: 40%

Month-Over-Month Rent Growth: 0.15%

1. Tampa, FL

Overall Population: 413,704

Renter Occupied Households: 44%

Month-Over-Month Rent Growth: 0.37%

Sources:

Matrix National Multifamily Report - April 2020

WorldPopulationReview.Com

RentCafe.Com