Some of the best apartment markets for rent growth are starting to lose a bit of steam, while secondary markets are surging, according to NREI's Bendix Anderson.
While San Francisco, Denver and Seattle have been the poster children of rent growth in this cycle, just Seattle remains in the top 10 in the latest assessment from market-research firms Axiometrics and CoStar Group. The highest levels of rent growth year-over-year are being seen in markets like Sacramento, Portland and Phoenix.
“Phoenix we are predicting to have the strongest rent growth of any metro—[it was] late to the recovery,” says Ethan Vaisman, real estate economist with research firm the CoStar Group. “Las Vegas [is] in same box.”
Meanwhile, some of the healthiest metros, like Nashville and Charlotte, are beset by a rash of new development, imperiling their long-term outlook.