September’s Multifamily Property Report
Cool breezes, turning leaves, and smell of apple pies and pumpkin spice make us realize the fall season is here. Okay maybe there’s too much pumpkin spice these days, but we can never get enough of rental markets, apartment prices, rent price ratios and desired yields. Big decisions await us in 2019.
While the rent vs buy decision pendulum for renters had swung in favor of buying instead of renting, it now appears the multifamily sector is more attractive for investors as demand for rentals grows.
The good news is that multifamily rents dropped only $1 per month during September to $1412/month. It’s a stat that saddens some, yet suggests strength in the rental market at a time when real losses in some areas are common. Cities affected by recent hurricanes and flooding are good cases in point. The best cities are clearly differentiated from poor performers.
Yardi Matrix Multifamily Report
Yardi Matrix just released its September Multifamily National Report (see our US Multifamily Report). Yardi report rents to date during 2018 are up 3.1%. They’re calling this solid growth.
Yardi in its report, says overall occupancy rates of stabilized properties bottomed out at 95.0% in late 2017/early 2018. However, they’re now back up to 95.4%. Rents have risen well during the summer of 2018, and Yardi further states that many cities which had gluts of rentals have now fully absorbed them. This is something property managers and owners will rejoice about.
City metros that have enjoyed the rent price growth over the past 12 months include Orlando (6.1% rent price growth), Las Vegas (6.0 rent growth), Phoenix (5.4% rent price growth), Tampa, Sacramento, San Jose, Atlanta, San Francisco and Boston. Sacramento had the highest rent growth in the last 3 months.
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Some markets shone brightly with a number of factors such as employment growth, rent growth, high completions, and high occupancy rates as this screen capture from their report shows:
Most housing markets they report on saw falling or flat returns. And the differential between all markets has shrunk from 890 points to 560 basis points.
The apparent takeaway: Multifamily fundamentals are in balance in most markets. Despite continued new supply, rents and occupancy appear well positioned for steady growth in the coming year.
Yardi Matrix is a reliable source, however it is but one research firm reporting on the multifamily rental market in the US. For broader updates on the California, Texas, and Florida rental markets, see our posts on those states.
Getting to Know PropTech
Is your property management company using the best offerings of Proptech companies? The new software and services not only differentiate property managers as modern and forward looking, they show they’re able to scale up and manage cost effectively.
If you’re hoping to increase rental yields in 2019, you’ll want to see our tips pages to do it strategically rather than tactical. Ensure you set the right rental price, advertising well, screen tenants professionally, and keep your cash flow positive for years ahead.
Welcome in 2019 the Right Way
The most important asset for your property management business this year is an all in one property management software solution. The value received compared to the low subscription price makes it valuable. And the power to improve your daily work processes and generate better yields on your properties makes you look good to your clients.
It’s about more than automation. You’re optimizing every area of your business including tenant relations.
And perhaps the most important asset property managers can have today is cloud based property management software. It can simplify your accounting tasks, improve tenant communications, and keep you highly compatible to today’s renters including millennials and babyboomers.
See also: Property Management | Accounting | Las Vegas Housing Market | Los Angeles Housing Market | California Housing Market | Toronto Housing Market | Australia Housing Market 2019 | UK Rental Market | San Jose Housing Market | San Francisco Housing Market | San Francisco Rental Market | Florida Housing Market 2019 | Hawaii Housing Market 2019 | Apartments for Rent | 2019 Rental Property Market | Property Manager Training | Cloud Property Management Software | Property Managers in California | ManageCasa Rental Property Software