Rent growth numbers are flexing the strength of the recovery as a new post-recession peak was reached in July.
Effective rent growth hit 5.1 percent in July, up from 4.5 percent in June. This marks a peak of 30 basis points above the previous high in June 2011 when rent growth hit 4.8 percent, according to a report released by Dallas-based Axiometrics.
California markets continue to lead the nation: Half of July's top 10 markets are found in the Golden State. Oakland saw the largest July growth at 10.3 percent, while San Jose and Sacramento crept up with 9 percent and 8.6 percent respectively.
Meanwhile, Portland, Ore. contributed to the positive growth numbers with 6.7 percent, says Stephanie Mccleskey, vice president of research. Job growth was the biggest contributing factor in Portland as the area added about 32,000 jobs over the last year. The addition of about 1,000 units in the next six months isn't expected to cause a deceleration, given the aggressive demand.
“We think the Portland market is going to remain strong for a few years,” Mccleskey says. “We’re not expecting the Portland market to slow down until late 2015."
Here’s the rest of the list:
Top 10 Rent Growth Markets of July
1. Oakland 10.3%
2. Denver 9%
3. San Jose 9%
4. Sacramento 8.6%
5. Atlanta 7.4%
6. Miami 7.1%
7. Seattle 7.3%
8. Oxnard, CA 6.8%
9. Portland, OR 6.7%
10. San Francisco 6.3%
Lindsay Machak is an Associate Editor for Multifamily Executive. Connect with her on Twitter @LMachak.