Best Performing Market in the Midwest Keeps Climbing
Kalamazoo is the best performing apartment market in the Midwest, and fundamentals here continue to progress. In the year-ending September, Kalamazoo rents grew 15.1%, ahead of the national norm of 12% and well beyond the Midwest average of 8%. A few other small Midwest markets saw annual rent growth around the 12% mark as of September, including Fort Wayne, Grand Rapids and Flint, while the best-performing major Midwest market was Indianapolis, with growth of 11.6%. Before the COVID-19 pandemic, annual rent change in Kalamazoo basically matched the national norm, as both hovered around 3%. Like some other markets in the Midwest, Kalamazoo managed to evade the most detrimental impacts of the pandemic. Operators never turned to cuts and growth bottomed out at 1.7% in June 2020. Apartment occupancy in Kalamazoo is also a top performer regionally. At 98.7%, September occupancy tied the rate in Ann Arbor for the best showing in the Midwest. Occupancy is also on its way up in Kalamazoo, climbing 150 basis points in the past year.