Class C Multifamily Rents Pick Up
Effective rents for class C
multifamily assets grew at a rate of 4.3 percent in February, the strongest
rate recorded across all property classes, according to an Axiometrics report.
Overall, effective rent growth
experienced a slight decline to 3.5 percent last month. The drag on overall
growth continues to be class A properties, which declined 1.7 percent year over
year to 3.2 percent in February. Class B properties remained steady, posting an
annual effective rent growth of 3.6 percent.
Although rent growth remained
solid, its pace slowed in recent months as metropolitan statistical areas transitioned
from the substantial rent growth recorded over the last three years to a more
moderate growth pattern.
“Rents had been pushed so much at the upper end
of the market it was inevitable we would begin to see a slowdown in growth for class
A properties,” says Ron Johnsey, president of Axiometrics. “But we may also be
seeing some impact from new properties coming online in certain markets.”