Boise, Other Zoom Towns Still Leading Multifamily Rent Growth

July 8, 2021, Lynn Pollack, GlobeSt.com - Apartment rents are increasing at the fastest rate seen in decades, with Zoom boomtown Boise posting the biggest increases in the second quarter.  Boise, a favorite destination for pandemic WFH-ers, showed the most aggressive annual rent growth, with pricing up 21.2%.   The city logged unprecedented rent growth in 2020 as well. 

Effective US asking rents are up 2% in June alone, an uptick that pushed year-over-year pricing increases up 6.3%, according to data from RealPage.  That’s the highest 12-month increase recorded since early 2001.  And the average US monthly apartment rent rings in at $1,513, also a high watermark.

Among larger cities with at least 100,000 apartment units, Phoenix posted 19.2% annual rent growth, followed by Las Vegas, West Palm Beach, Riverside/San Bernardino and Tampa.  Effective asking rents are down year-over-year in only five of the country’s 150 largest metro areas and include Midland/Odessa, TX (-12.9%), San Francisco, New York City (-8.4%), and San Jose (-6.6%).  

Occupancy hit 99% or higher in Salisbury, Md., Bakersfield, Calif., and Allentown, Penn. Riverside/San Bernardino is the only large metro that posted similar numbers, at 98.5%.

Demand for apartments has also hit an all-time high, led by the Dallas-Fort Worth metro.  The number of occupied apartments in the 150 biggest US metros increased by 219,909 units in the second quarter, the largest quarterly increase since RealPage began monitoring that figure in the early 1990s.