Reports and Materials

Multifamily performance has rebounded quickly from the pandemic slowdown, with the exception of properties in urban gateway metro submarkets. According to a study of 78,000 properties in Yardi Matrix’s database, large occupancy declines in the last year have been concentrated in a handful of cities that may take years to recover.

Absorption of multifamily properties topped 250,000 units in 2020, an unexpectedly robust showing given the impact of COVID-19. Fast-growing secondary metros such as Dallas, Atlanta and Denver saw the highest absorption, while growth was negative in high-cost coastal metros. Although the industry faces challenges in 2021, the durability of demand is a good sign moving forward.

U.S. office property sales were heavily impacted by the COVID-19 fallout in 2020, dropping by nearly half year-over-year to $56.1 billion. However, the short-term loss of sales is likely just the beginning of the pandemic’s lasting impact on the office sector. There are numerous questions about future work-from-home trends and corporate office space needs, with the answers uncertain for now. Investors are watching closely to see where the sector lands.

Multifamily concessions rose sharply in the spring and fall of 2020 as multifamily demand waned due to job losses and social distancing measures. The impact was felt most in high-cost gateway markets, while secondary and tertiary markets benefited from the shift in demand. Concessions declined in the fourth quarter, raising possibilities that demand is recovering or rents are being reset.

Uncertainty caused self storage investment activity to stall during 2020’s second quarter, as’ with other commercial property types. The disruption appears to have been short-lived, however, as storage transactions began picking up again in the second half of the year.

After record multifamily transaction volume in 2019, sales plunged in 2020 due to COVID-19. The impact, however, wasn’t felt evenly across the country. A new white paper from Yardi Matrix looks at how sales activity changed, which regions were affected the most, and how investor demand will impact pricing and sales volume going forward.

Job losses during COVID-19 have varied greatly by metro. An analysis by Yardi Matrix found that metros with large tourism concentrations and high-cost Gateway metros fared the worst, while growing Sun Belt and Midwest markets lost the fewest jobs. However, the numbers provide hope for struggling markets to recover post-pandemic.

The multifamily sector had another record-breaking month in May, with national rents recording their greatest increase in the history of our data set. All top 30 metros had positive month-over-month rent growth for the second consecutive month, with New York’s rent growth far surpassing the other metros.

For the first time since March 2020, all top 30 markets had positive month-over-month rent growth. But the real sign of recovery was the improved performance in many gateway markets.

Affordable metros in the West and Southeast continue to be the clear winners coming out of the pandemic. But even expensive coastal and gateway markets have begun to bounce back, albeit slowly.

Many markets experienced strong year-over-year rent growth in February, while others have begun to recover following rent declines in the summer and fall. However, urban cores continue to see rent declines. A major factor in their ability to bounce back is the percentage of the workforce that remains remote once the pandemic subsides.

Nationally, rents remained relatively flat in January, declining by 0.2% on a year-over-year basis. On the market level, some gateway markets appear to have hit bottom, while low-cost tertiary and secondary markets continue to see strong rent growth.

Nationally, multifamily rents ended the year relatively flat, with a slight downward tilt. But the extreme bifurcation between expensive gateway markets and their neighboring lower-cost metros continued into December. Get a complete recap of December market performance in our latest report.

National rents declined for the sixth consecutive month. However, many tech hub and tertiary markets are performing extremely well. Rents in many Midwest and even some Northeast markets have seen consistent growth, possibly benefitting from the exodus out of expensive gateway markets. Explore our latest report to learn how the top 30 markets ranked in terms of rent growth in the month of November.

The storage sector continued to prove itself as a strong performer. The new supply pipeline is unwavering, and street rates across the country are climbing each month due to heightened demand.

Storage continued its positive momentum in April. Street rates had another strong month and continue to rise nationwide, while there has not been a meaningful shift in development activity.

Self storage continues to ride the demand tailwinds caused by COVID-related disruptions, benefiting sector fundamentals. Street rates are rising and development activity is strong across the nation as we move into the second quarter of 2021.

Aided by a COVID-driven boost in demand, storage maintained positive performance, with solid fundamentals. In February, the sector continued to see strong street rate improvements and development activity remained stable.

Strong fundamentals, including significantly improving street rate performance and stable development activity, are helping maintain a positive outlook for the self storage industry as we move into a new year.

The self storage industry ended the year strong, continuing to prove its ability to fare well even when faced with difficult economic conditions. Street rate performance improved substantially across the nation on an annual basis, and development activity remained relatively stable. Read the full report to learn which markets' street rates ended the year with historical highs.

The self storage industry continued to prove its resiliency in October, with ongoing improvements in street rates across the nation and development activity maintaining a steady pace in most markets.

Sublease space has climbed since the start of the pandemic, as many firms look to reduce their office footprint. Among the top 30 markets covered by Yardi Matrix, 20 saw total available sublease space more than double.

With nearly a quarter of the population fully vaccinated against COVID-19, companies are beginning to plan their return to the office later this year. The reported plans of large tech companies offer a glimpse into how a return may unfold.

As the one-year anniversary of early coronavirus lockdowns nears, office vacancy rates continue to climb in most U.S. markets. New supply in progress has continued to be delivered but is forecast to decline in coming years. Read about the latest trends and data in this month’s Yardi Matrix National Office Report.

As the one-year anniversary of early coronavirus lockdowns nears, office vacancy rates continue to climb in most U.S. markets. New supply in progress has continued to be delivered but is forecast to decline in coming years. Read about the latest trends and data in this month’s CommercialEdge National Office Report.

A picture of how coworking may look in the post-pandemic world is beginning to emerge. Meanwhile, vacancy rates for traditional office space have spiked in the past year, though not all markets are seeing equal bumps.

Last year was a tough one for the office sector, due to the COVID-19 pandemic. Things may turn around in 2021, but the path forward is murky. Read about trends impacting the office sector and get the latest supply and listing rate data in this month’s CommercialEdge National Office Report.

With vaccines for COVID-19 rolling out this month, the long-term prospects of the office industry are relatively optimistic. However, the outlook for the next few years is uncertain. Read about this and other trends and get the latest data for the commercial industry in this month’s CommercialEdge report.

With a massive real estate footprint, e-commerce behemoth Amazon is influencing both the industrial real estate investment and development markets.

Southern California has the hottest industrial markets in the country, and demand from Los Angeles and the Inland Empire has spilled over into Phoenix. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Report.

Appetite for industrial space is strong across the country, but new development is being influenced by availability of land and impacting rents. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Report.

Appetite for industrial space is strong across the country, but new development is being influenced by availability of land and impacting rents. Read about this trend and get the latest data in this month’s CommercialEdge Industrial Report.

Industrial real estate is set for continued growth, following the new highs for demand. E-commerce will continue to gain a growing share of retail sales and the economic recovery will fuel growth with replenished inventories and increased global trade.

Industrial real estate is set for continued growth, following the new highs for demand. E-commerce will continue to gain a growing share of retail sales and the economic recovery will fuel growth with replenished inventories and increased global trade. Read about these trends and get the latest data in this month’s CommercialEdge Industrial Report.

CommercialEdge’s new monthly report explores how the pandemic has caused e-commerce to explode and propelled the industrial sector to outperform other commercial real estate asset classes. Get the details, along with the latest data on rents, vacancy, new supply and transactions in the inaugural edition of our National Industrial Report.

Yardi Matrix’s newest monthly report explores how Industrial has outperformed other commercial real estate asset classes. Get the details, along with the latest data on rents, vacancy, new supply and transactions in this report.

After a year dominated by COVID-19, what will normal look like for the multifamily market and economy? The recovery might linger until the second half of 2021, depending on vaccine deliveries. High-cost gateway markets, which suffered the greatest impact from the pandemic, are looking to recover, while secondary metros in the Sun Belt, Midwest and Southwest hope to continue their momentum.

The outlook is bright for student housing fundamentals as the U.S. emerges from the pandemic. Most universities have announced in-person instruction plans for the fall, and pent-up demand from students who took a gap year, 2021 high school graduates and gradually returning international students will fuel growth in preleasing and rents leading up to the fall term.

Yardi Matrix’s new quarterly report finds prelease activity for the upcoming fall term lagging as students and parents take a wait-and-see approach. Get the details, along with the latest data on rent growth, new supply and transactions, in the inaugural edition of our National Student Housing Report.

Showing signs of improvement, Philadelphia Lifestyle and RBN rents both increased by 0.4% on a trailing three-month basis. Development continued, with more than 13,000 units under construction. Transaction volume, however, has yet to bounce back from its 58.1% drop last year.

Rent growth in Atlanta moderated slightly, but rents still rose 0.3% on a trailing three-month basis through March to $1,378. The employment market contracted by just 3.5% in the 12 months ending in December, outperforming the -6.8% national rate.

Brooklyn rents were up 0.3% on a trailing three-month basis through March, to $2,637. Year-over-year, Brooklyn rates were still down 10.5% as of March, but recent activity points to steady improvement.

Charlotte has continued to be resilient, with rents improving for the third consecutive quarter. On a trailing three-month basis through March, rents rose 0.3% to an average of $1,251.

Las Vegas rents remained among the top three performers nationally, rising by 0.5% on a trailing three-month basis through March to $1,187, 20 basis points above the U.S. average. Investor demand, however, is waning: transaction activity softened, and the per-unit price fell by 38.8% to $113,052.

With 1 million jobs missing from New York City, the boroughs have a long road ahead. As of March, Manhattan rents were down 0.5% to $3,626 on a trailing three-month basis. More than 5,000 new units are also under construction, meaning pressure on pricing is likely to stick around even as the job market improves.

Queens rents were down 0.6% on a trailing three-month basis through March to $2,427. Development has also tanked: the number of completed units in the 12 months ending in March dropped 80.9% to 406 units from the previous 12 months, marking a five-year low.

San Antonio’s robust supply additions and substantial construction pipeline, coupled with pandemic disruptions, kept rent growth flat on a trailing three-month basis through March at $1,056.

Rent growth in St. Louis moderated, rising 0.1% on a trailing three-month basis through March to $1,003. Meanwhile construction activity remains intense, with 4,491 units underway.

The Minneapolis-St. Paul metro has persevered through the pandemic. Both Lifestyle and RBN rents increased by 0.2% on a trailing three-month basis through March. Development continues at a steady pace, with 1,991 units delivered in the first quarter

Albuquerque rents appreciated by 0.3% on a trailing three-month basis and by 6.1% on a year-over-year basis through February to $994. The employment market, at -4.8% in the year ending in December, outperformed the national average by 200 basis points.

Cleveland’s multifamily market has been durable despite economic volatility. Since the onset of the pandemic, rent growth has not slipped into negative territory. On a trailing three-month basis through February, rents rose 0.2% to $980, while the U.S. figure contracted by 0.1% to $1,399.

Columbus rents rose 0.3% to $1,037 on a trailing three-month basis through February. However, COVID-19 has heavily impacted the metro’s employment pool, which contracted by 70,500 positions in 2020, according to federal estimates.

The Indianapolis multifamily market has remained resilient during the pandemic, thanks to demand driven by a supply imbalance in Class A assets. Rents were up 0.3% to $877 on a trailing three-month basis through February.

Rent growth in the metro was consistent through 2020, and the positive momentum carried over into the new year. As of February, rents were up 0.1% to $1,168 on a trailing three-month basis, slightly below the $1,399 national average.

Knoxville rents rose 0.4% to $1,099 on a trailing three-month basis through February, with strong demand for both asset classes. The employment market posted a 2.2% contraction in the 12 months ending in December, substantially outperforming the -6.8% national rate.

Orange County rents rose 0.3% to $2,449 on a trailing three-month basis through February, but the employment market remained sluggish, down 9.4% in the 12 months ending in December. Investment activity resumed, with the per-unit price marking a new high.

Rents increased by 0.3%, with RBN growth leading the pack. Investment volume increased 4.6% to $245 million, as per-unit pricing jumped by nearly 9%. Developers broke ground on 1,100 units in 2020 as deliveries slowed.

A robust recent supply and construction pipeline tempered rent growth in Richmond; it rose 0.3% on a trailing three-month basis through February, to $1,204. The diverse economy aided the employment market, which posted a 4.6% contraction in the year ending in December.

The trend of lower-cost markets outperforming is visible in Salt Lake City. Unemployment is the lowest in the Western region and the metro’s multifamily market has been resilient. At $1,249, the average rent grew 0.4% on a trailing three-month basis through February, 30 basis points above the U.S. rate.

While rent growth rebounded in Austin, its employment market contracted 2.8% year-over-year as of November. The number of apartments added to the market in 2020 was the second highest influx of the decade, and transaction activity also soared.

Baltimore rents were up 0.4% on a trailing three-month basis, to $1,426. However, the pandemic hit the metro’s employment pool hard, causing it to contract by 97,500 positions in 2020, according to federal estimates.

Rent growth marked its fifth consecutive month of appreciation in Dallas, rising 0.2% on a trailing three-month basis through January to $1,225. Employment growth posted a 3.3% contraction in the 12 months ending in November, well above the -7.2% U.S. rate.

Despite the challenges of 2020, multifamily fundamentals held up in Detroit. Steady rent growth persisted, with the rental average reaching $1,052 in December and holding through January.

Houston’s multifamily market is facing challenges, including record low oil prices and the cleanup from February’s harsh winter storm. As of January, rents stayed flat on a trailing three-month basis, at $1,109, behind the $1,466 national average.

Rents increased 0.6%, with “Lifestyle” rent growth at 1.0%. Investment volume dropped by 40 percent in 2020 to $1 billion, but per-unit prices hit a new high. Developers broke ground on some 1,000 units in the second half of 2020.

While rent expansion was consistent in Kansas City throughout 2020, the pandemic’s impacts became visible near year-end and carried over into early 2021. Rents were down 0.2% to $1,008 on a trailing three-month basis as of January.

Ongoing economic volatility continues to challenge Orlando’s multifamily market. For the fifth consecutive quarter, rent movement in Central Florida has trended negative. Rates dropped 0.2% to an average of $1,336.

Rents rose 0.5% on a trailing three-month basis through January to $1,392, ranking Sacramento second for growth among major U.S. metros. Supply additions marked a new high in 2020, while per-unit prices rose by 27%.

San Jose rents continued to slide, down 0.9% on a trailing three-month basis through January to $2,545, and included heavy concessions. The tech-focused employment market posted a 7.4% contraction in the 12 months ending in November.

Rents contracted by 0.5%, with Lifestyle rents dropping 0.7%. Transactions through December totaled $1 billion, a 65% decline from 2019. Developers added 7,128 units in 2020, with 18,167 more units underway.

The market could not avoid rent drops in 2020—it was down 3.0% year-over-year as of December—but there is some relief in sight. Forty of the metro's 97 submarkets saw positive year-over-year rent movement. And deliveries have stayed strong, with 9,458 units delivered last year as demand withstood a population drop.

Rents in the Miami metro were up 0.4% to $1,704 on a trailing three-month basis as of December, well above the $1,462 U.S. average. As the metro weathers pandemic-driven economic hardships, Miami is considered an example of resilience in the face of adversity.

Average rents in Portland slid 0.1% on a trailing three-month basis through December, in line with the U.S. rate. Despite economic damages inflicted by the pandemic, the metro’s multifamily market is well positioned to thrive long-term.

With strong fundamentals mitigating most of last year’s economic shock, the Raleigh-Durham multifamily market is well positioned for a steady recovery. The average rent was down 0.2% on a trailing three-month basis through December, to $1,226. Meanwhile, the national average contracted by 0.1% to $1,462.

Following a bumpy second quarter, San Diego multifamily found a smoother course in the second half of 2020. And while the average rent was down 0.3% last year, both rate growth and development are expected to recover this year.

The Bay Area’s average rents were heavily impacted by pandemic fallout, down 1.1% on a trailing three-month basis as of December. At $2,463, the market still has one of the highest average rents in the nation, and its tech-focused economy has begun its anticipated recovery.

Seattle’s multifamily market ended 2020 in a difficult position. Rents were down 1.1% on a three-month basis through December, to $1,797. However, the figure remained above the $1,465 U.S. average. Rent growth is expected to rebound by the end of this year.

As of December, the metro led the top 30 markets for short-term rent gains. On a trailing three-month basis, rents were up 0.8% to $1,337, just below the $1,462 U.S. average. With an attractive climate and strong long-term prospects, Tampa is slated for further growth.

Washington, D.C., rents were down 0.7% on a trailing three-month basis, to $1,758. Additionally, the metro’s employment market remains rattled, contracting by 181,100 positions (6.1%), in the 12 months ending in November.

Rent growth rebounded in Atlanta, up 0.7% on a trailing three-month basis through November to $1,354. The 6.1% contraction in employment growth over 12 months ending in September placed the metro among the top performers in the nation.

Brooklyn rents were down 2% on a trailing three-month basis, to $2,621. New York City’s employment market took a hit last year, contracting by 15.3%, or 834,500 positions, as of September.

After overcoming the pandemic-propelled economic shock, Charlotte’s multifamily market is now on a recovery path. Overall rents averaged $1,229 in November, growing by 0.5% on a trailing three-month basis, while the U.S. growth rate stayed flat.

Rents contracted by 0.6%, with Lifestyle sector rents dropping 1.1%. Transactions through November totaled $1 billion, a 60% decline compared to the previous year. Development remained underway on 17,500 units, though deliveries fell from 2019’s cycle high.

Denver’s employment market shrank 6.5% in the 12 months ending in September, but with three key sectors adding jobs, it outperformed the 9.3% national contraction rate. Multifamily development and transactions picked up in the third quarter, positioning the city for a strong 2021.

Mirroring gateway market trends, Manhattan is among the most impacted large U.S. metros. As of November, rents were down 1.6% to $3,758 on a trailing three-month basis.

Employment growth marked a 7.7% drop in the 12 months ending in September, outperforming the national rate by 140 basis points. Following a slow second quarter, multifamily transactions and development both picked up in Q3. However, rents shrank back into negative territory.

Phoenix’s remarkable rent performance extended, rising 0.8% on a trailing three-month basis through November to $1,259. Employment growth marked a 4.2% decline in the 12 months ending in September, landing it among the country’s top performers.

Queens has a lengthy rebound phase ahead. As of November, rents were down 1.1% to $2,439 on a trailing three-month basis, but still well above the $1,465 U.S. average.

Rent growth in Minneapolis-St. Paul entered negative territory at the end of the third quarter. On a trailing three-month basis through November, rent growth was down 0.3%, while the national rate stayed flat. Although the rental market is feeling the strain of the pandemic, deliveries forged ahead.

Baltimore rents were up 0.6% on a trailing three-month basis, to $1,406. However, the current health crisis hit the metro’s employment pool hard, causing it to contract by 8.6%, or 115,100 positions, in the 12 months ending in September.

Despite the magnitude of the job losses and the contraction in economic activity, the Cleveland multifamily market has been solid. Rent growth has not slipped to negative territory since February 2018. Rents increased by 0.3% on a trailing three-month basis through October, while the national growth rate was flat.

Detroit’s average rent rose 0.7% on a trailing three-month basis through October to $1,050, outperforming the national improvement rate but trailing the U.S. average. The employment market was among the 10 hardest hit in the country, marking a 14.9% contraction year-over-year as of September.

Rent growth in the Inland Empire led the nation, up 1.2% on a trailing three-month basis through October to $1,669, while the U.S. average stayed flat. Increased demand favored residential development, with 2,393 units delivered and another 2,302 underway as of October.

Despite the economic deceleration, average Kansas City rents improved 0.4% on a trailing three-month basis, following consistent rent growth over the past 24 months. Rents stood at $1,011 as of October, affordable compared to the $1,464 U.S. figure.

Employment in Las Vegas marked a 15.8% decrease year-over-year as of September, well behind the -9.3% U.S. rate. However, the metro’s average rent ranked third highest in the country, rising 1.1% on a trailing three-month basis through October to $1,163.

The metro’s multifamily sector continues to make headway despite economic challenges and new restrictions. As of October, rents were up 0.4% on a trailing three-month basis to $1,424, slightly below the $1,464 U.S. average.

Salt Lake City’s multifamily market has been among the most resilient in the country. Rent gains started to rebound in June, with rates rising 0.5% to $1,229 on a trailing three-month basis through October. Meanwhile, the national growth rate stayed flat.

Rents in San Antonio entered the fourth quarter with an increase of 0.1% on a trailing three-month basis through October to an overall average of $1,049. Meanwhile, job growth was among the top 10 best in the country and deliveries of new apartments surpassed last year’s total.

Rents expanded by 0.3% on a trailing three-month basis, outperforming the U.S. rate. Transactions through October increased to $484 million, a 35% gain compared to the previous year. But development slowed, with only 957 units delivered.