The apartment market posted torrid growth in 2021, according to a number of industry sources.
Apartment List says prices increased more than 11% in the first half of 2021. That growth is double the size of inflation and triple the typical rent growth usually measured by the company. In addition, 87 of the nation’s largest 100 cities have fully rebounded to pre-pandemic prices. In some places, rents have jumped more than 30% since March 2020.
Things took off even more over the summer.
In June, Realtor.com data shows that rents jumped 8.1% year-over-year to $1,575 in the nation’s 50 largest metros. Median rents have risen 10.4%, or $149, compared to June 2019. Usually, rents fluctuate less than 1% from month to month. In May and June, they increased by 3.0% and 3.2% from each month to the next. And, in 44 of the 50 largest markets, rents were the highest they’ve ever been.
In July, things got even better. The apartment market posted one of its best months in a long time that month as rents grew at an 8.3% level and occupancies hit 96.9%, according to RealPage. Over the summer, the market grew so tight that RealPage says there were less than 500 vacant units for rent in 14 of the nation’s core 150 apartment markets.
While we’re still awaiting the full release of August, and eventually third quarter, numbers, it’s safe to say that it will be tough to match the apartment market’s summer 2021 performance in future years. But the signs still point to a bright future.