Apartment Top & Bottom Markets: Effective Rent Growth
The national apartment market saw a year-over-year effective revenue growth rate of 3.8%. Houston, Phoenix, and Atlanta return this quarter in the top five markets. Phoenix, with a year-over-year growth rate of 7.1%, is in the top position on the chart. The weakest of the top five markets, Atlanta, had a year-over-year growth rate of 5.8%. In fact, aside from Phoenix, all the markets in the top five had growth rates around 5.8-5.9%. By this metric, the markets in the top five had a similar performance this quarter.
At a property level, the top five markets also had a similarly shaped distribution of property performance – although the ranges of the distributions varied slightly. Houston had a number of properties with year-over-year growth rates of over 20% last quarter and it still had a number of examples of high performers this quarter. Phoenix experienced a similar pattern – over 20 properties had growth rates over 20% this quarter. Keep in mind, this analysis excludes the top 10% of properties with the highest effective revenue growth rate.
On the other half of the chart, Louisville and Columbia were again in the bottom five markets with performance similar to last quarter. Also, just like last quarter, none of the markets had an overwhelmingly negative performance overall, and no market had a disproportionate amount of negatively performing properties.