Garden Apartments Lead Rent Growth
Rents are climbing fastest in the nation’s garden-style apartments. Pricing is up 3.7% on an annual basis in properties of one to three stories, with the performance strengthening a little compared to the growth rate recorded in early 2018. Projects of higher density register slower annual rent growth – 2.3% in the mid-rise properties of four to six stories and 2.0% in the high-rise developments of seven or more stories. However, it’s notable that current annual rent growth results in the mid-rise and high-buildings are substantially above year-earlier levels. That shift means urban core areas, where mid-rise and high-rise buildings are concentrated, are once again gaining some pricing momentum, after a big wave of completions earlier stalled out rent growth in many downtown or downtown-adjacent settings.