Top-Performing Class A Rent Growth Markets
Some key markets, largely located in the West region, have seen especially healthy Class A rent growth in the past year. Among the nation’s 150 largest apartment markets, Huntsville saw the biggest overall annual price increase at 7.7%, and this performance was driven by an increase of 10.5% in the market’s luxury stock. Apartment operators here have been able to leverage a unique and exceptionally valuable local economy to churn strong Class A performance. Approximately 24% of the Huntsville employment base belongs to the Professional/Business Services sector, well ahead of the U.S. average of 14%. Meanwhile, Phoenix – the rent growth leader among the largest 50 apartment markets – saw notable growth of 7.3% in luxury product. Also registering a strong rent growth performance in Class A properties were several markets with notable university footprints, including Boise City (Boise State University), Knoxville (University of Tennessee), and Albuquerque (University of New Mexico).