Apartment Market Growth in 2019
ATLANTA–(BUSINESS WIRE)–Apartments.com – the most visited apartment-listing site – and CoStar Group – the data/analytics leader of the commercial real estate industry – looked at rental markets in the United States with more than 50,000 units and have compiled the hottest markets of 2019 according to number of new units, highest rent levels and rent growths, and decreases in vacancies.
Highest Number of New Units
With 19,522 apartment units built in 2019, Dallas-Fort Worth, Texas leads the nation with the highest number of new units. For renters looking for a new home in Dallas, there are nearly 28,000 places to live available on Apartments.com currently, waiting for the perfect renter. It’s only gotten more expensive for renters, as the average market rent was $1,191/month, growing about 2.3% last year. According to Apartments.com, the average apartment rent in Dallas is $969 for a studio, $961 for one bedroom, $1,436 for two bedrooms, and $1,652 for three bedrooms. Going into 2020, there should be plenty of affordable options for those looking to rent. Following behind Dallas-Fort Worth is New York City with 17,075 new units, Washington, D.C. with 12,852, Chicago with 10,012, and Denver with 9,547.
Highest Rent Level
To no surprise, San Francisco had the highest recorded market rent level of 2019 in the nation. In the past year, apartment rent in San Francisco increased by 1.8%, with the market rent level now averaging at $3,110. There are more than 4,000 apartments available on Apartments.com for renters searching for a new home in San Francisco. Renters should be prepared to pay an average rent of $2,381 for a studio, $3,018 for one bedroom, $4,128 for two bedrooms, and $4,893 for three bedrooms. In a competitive rental market such as San Francisco, renters should monitor Apartments.com often for new listings.
After San Francisco, New York, NY has the next highest rent level of $2,833, followed by $2,770 in San Jose, CA, $2,525 in San Rafael, CA, and $2,314 in Boston, MA.
Biggest Market Rent Growth
In 2019, Phoenix, Arizona saw a 6.8% increase in market rent growth – the largest increase in the nation. With the market rent level averaging at just over $1,150, Phoenix still remains a fairly affordable market for renters. Phoenix apartment rents average $828 for a studio, $975 for one bedroom, $1,139 for two bedrooms, and $1,457 for three bedrooms. Apartments.com currently lists more than 12,000 available rentals in Phoenix. Other markets that saw great market rent growth in 2019 include Tucson, AZ with a 5.7% increase, Albuquerque, NM with a 5.1% increase, Las Vegas, NV with a 4.6% increase, and Raleigh, NC with a 4.6% increase.
Largest Vacancy Percentage Decrease
Charleston, SC saw the largest vacancy decrease of 300 basis points in 2019. The vacancy rate moved from 12.2% at the end of 2018 to 9.1% at the end of 2019. Renters looking for a new home in South Carolina’s oldest and largest city can choose from over 3,500 available rentals on Apartments.com with average rent level of $1,223.
The top five markets that saw the largest vacancy percentage decreases include Charleston, SC, Baton Rouge, LA, El Paso, TX, Madison, WI, and Grand Rapids, MI. Baton Rouge saw a 290 basis point decrease in vacancy and moved from 14.8% to 11.9%. El Paso saw a 211 basis point decrease, as the vacancy rate moved from 8.2% to 6%. Madison saw a 180 basis point decrease in vacancy as the rate moved from 5.2% to 3.4%. And Grand Rapids’ vacancy rate moved from 7.2% to 5.4%, a decrease of 175 basis points.
Renters searching in the hottest markets for a new apartment to call home can visit Apartments.com for more information.
*Data as of 1/14/2020
Apartments.com is the leading online apartment listing website, offering renters access to information on more than 1,000,000 available units for rent. Powered by CoStar, the Apartments.com network of sites includes Apartments.com, ApartmentFinder.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, ForRent.com, ForRentUniversity.com, After55.com and CorporateHousing.com. Apartments.com is supported by the industry’s largest professional research team, which has visited and photographed over 400,000 properties nationwide. The team makes over one million calls each month to apartment owners and property managers, collecting and verifying current availabilities, rental rates, pet policies, fees, leasing incentives, concessions, and more. Apartments.com offers more rental listings than any other apartments website, and innovative features including a Polygon™ tool that allows users to define their own search areas on a map, and a “Plan Commute” feature that lets users search for rentals in proximity to a specific address. Apartments.com creates easy access to its listings through a responsive website and iOS and Android apps, and provides unmatched exposure for its advertisers through an intuitive name, strategic search engine placements and innovative emerging media. The Apartments.com network reaches millions of renters nationwide, driving both qualified traffic and highly engaged renters to leasing offices. For more information: www.Apartments.com.
Megan Sweat/Christine Dusome/Janel Kerigan
The Zimmerman Agency