Understanding a geographic market area is a vital part of real estate investment strategy. Possessing trend awareness with regard to demographics, job growth and wealth plays an important role in identifying with potential cost of housing increases. As a result, organic rent growth is one of the most telling reflections of a geographic market’s demand.
Acquiring multifamily properties in areas with increasing rent and demand can provide a nice boost to other value-enhancing methods, such as renovations. Here we’ve listed 10 cities with the highest rent growth according to the US Census covering the past 5 years.
10. Austin, Texas
2013 Average Rent: $978
2018 Average Rent: $1,361
5-yr % Rent Increase: 3.9%
1-yr % Rent Increase: 4.4%
9. Denver, Colorado
2013 Average Rent: $883
2018 Average Rent: $1,597
5-yr % Rent Increase: 3.9%
1-yr % Rent Increase: 4.8%
8. Chicago, Illinois
2013 Average Rent: $949
2018 Average Rent: $1,889
5-yr % Rent Increase: 9.9%
1-yr % Rent Increase: 4.9%
7. Atlanta, Georgia
2013 Average Rent: $948
2018 Average Rent: $1,426
5-yr % Rent Increase: 5.0%
1-yr % Rent Increase: 5.3%
6. Tampa, Florida
2013 Average Rent: $940
2018 Average Rent: $1,291
5-yr % Rent Increase: 3.7%
1-yr % Rent Increase: 5.4%
5. Orlando, Florida
2013 Average Rent: $983
2018 Average Rent: $1,389
5-yr % Rent Increase: 4.1%
1-yr % Rent Increase: 6.1%
4. Jacksonville, Florida
2013 Average Rent: $927
2018 Average Rent: $1,065
5-yr % Rent Increase: 1.5%
1-yr % Rent Increase: 6.3%
3. Los Angeles, California
2013 Average Rent: $1,175
2018 Average Rent: $2,461
5-yr % Rent Increase: 10.9%
1-yr % Rent Increase: 6.6%
2. Phoenix, Arizona
2013 Average Rent: $870
2018 Average Rent: $1,014
5-yr % Rent Increase: 1.7%
1-yr % Rent Increase: 7.7%
1. Las Vegas, Nevada
2013 Average Rent: $993
2018 Average Rent: $1,025
5-yr % Rent Increase: 0.3%
1-yr % Rent Increase: 7.9%