Tampa/St. Petersburg, Orlando, Jacksonville and South Florida all posted above-average annual rent growth
MIAMI (April 11, 2019) – Strong apartment demand, sustained job growth, and a lack of affordable starter homes led to rising apartment occupancy and healthy rent growth nationwide in the first quarter of 2019, according to Berkadia’s National Trends Multifamily Report Q1 2019. Demand for apartments throughout the U.S. remained greater than inventory growth for the second consecutive year, boosting occupancy 20 basis points to 95.3 percent during the first quarter. Average effective rent advanced 4.1 percent annual to $1,356 per month in March 2019.
The report also identified the 15 markets where rent growth has been strongest year over year, four of which were in Florida – more markets than any other state.
“It’s no surprise that the Sunshine State had more growth markets than any other state,” said Berkadia’s Charles J. Foschini, Senior Managing Director and Co-Leader for the state of Florida. “The climate – literally and figuratively – is fantastic. Our state government continues to be a pro-job creator and our population continues to grow at a faster clip than almost any other state in the country. As investors look to place capital, Florida is an easy decision for most institutional groups. The high cost of construction keeps supply in check, and the lack of affordable housing across the state ignites an already strong demand for apartment living.”
All of the top rent growth markets, with the exception of San Diego and Los Angeles, were located in the so-called “Sun Belt” – Alabama, Arizona, Florida, Georgia, Nashville and South Carolina. Here’s how each Florida market performed:
- Tampa-St. Petersburg came in at No. 5 on the list, with average year-over-year growth of 6.8 percent and occupancy at 95.3 percent. Average rent rose from $1,137 to $1,214 between 2018 and 2019. Read the Q1 2019 Tampa-St. Petersburg report here.
- Orlando ranked No. 9, with 5.5 percent year-over-year average rent growth and 96 percent occupancy this quarter. Average rent rose from $1,170 to $1,234 over the past 12 months. Read Berkadia’s Q1 2019 Orlando report here.
- Jacksonville came in at No. 12 with average year-over-year rent growth of 5.3 percent, and occupancy at 95 percent. Average rent rose from $987 to $1,039 over the past year. Read Berkadia’s Q1 2019 Jacksonville report here.
- South Florida landed at No. 14 on the list, with 5.1 percent annual rent growth and 95.5 percent occupancy. Average rent climbed from $1,560 to $1640. South Florida was the second most expensive rental market on the list – only Los Angeles had a higher average rent ($1,889). Read the Q1 2019 South Florida report here.