MultiFamily Rent Growth Surpasses 10% for the First Time Ever
October 20, 2021
3 min read

The strength in the housing market emerging from the COVID19 crisis continues to be broad, affecting most geographies in the U.S., as well as most segments of housing. This strength is also being experienced in the multifamily space. As recently reported in the Scotsman Guide, “Multifamily asking rents surged 10.3% annually in August, according to Yardi Matrix, marking the first time in the history of the company’s data set that year-over-year rent growth eclipsed double digits.”[1]

This is a very important data point, signaling health for the overall economy. As we have discussed in past posts, the US economy is tightly integrated with the housing industry. So many aspects of the economy rely on the health of the US residential real estate market, including banking, insurance, manufacturing, construction, specialized trades, etc. The list goes on. At the height of the crisis in mid-2020, when unemployment was hitting levels not seen since the great depression, investors had plenty of questions regarding the viability of U.S. housing markets. Data such as this helps to put some of those concerns to rest. As the article correctly points out, “August’s figures are the latest proof of multifamily’s remarkable recovery from its earlier pandemic-induced doldrums, and while the country certainly isn’t out of the COVID-19 woods yet, its apartment market’s rebound has been robust.”1

However, it is not just the strength in rental pricing that makes the data so positive. It is also the geographic breadth with which the gains are being experienced, as well as the strong signal these gains are sending regarding the health of the job market. From the article, “The gains are being led by fast-growing tech hub markets, with Phoenix (22.0% annual rent growth), Tampa (20.2%) and Las Vegas (19.2%) leading the charge. All three are benefitting from strong job growth paired with a renter base with excess savings built up over the last year and a half, enabling them to upgrade to higher-end apartments. The recovery in rents is no longer centered around such tech hub metros, however. All of the top 30 metros tracked by Yardi have entered positive rent growth territory for the first time since the pandemic began.”1

Another important facet of these numbers is the positive news they show for large, urban environments. As detailed in the article, “with some employers signaling returns to onsite work on the horizon, renters have continued returning to urban cores.”1 This is a very good piece of news for municipal leaders and investors alike. During the height of the pandemic, as remote-working arrangements proliferated, many experts wondered aloud if we were on the cusp of witnessing a generational decline in urban housing needs. Would-be home buyers and renters were moving en masse to suburban locales that offered larger homes and more outdoor amenities. In all fairness, that was a trend that began before the pandemic, but was significantly accelerated. The strong growth in rental rates in urban cores is a good sign that the demand for single and multi-family housing in large cities is still healthy.

Lending to value-add multi-family real estate investors continues to play a role in Aloha’s business. This recent, optimistic data on multi-family rent growth is just one more validation point. We continue to see more demand for lending solutions like ours from this market. As we have pointed out in past posts, the residential single-family and multi-family housing markets continue to show strong growth as supported by healthy fundamentals.




“Yardi: Multifamily rent growth surpasses 10% for first time ever” by Arnie Aurellano, Scotsman Guide, 9.15.2021


Chris Jones
Chris Jones

Chris oversees business development, investor relations, and capital partnerships. With 25 years of experience in alternative investments, Chris has raised $250 million in assets. He’s served as Chief Compliance Officer, co-managed a Fund of Funds, and worked in operations and trading. Chris has been instrumental in growing four companies. Through firms like Sapourn Financial Services, Dekker Capital Management, and Diamond Peak Capital, he’s delivered solid absolute returns across varied market cycles.