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.”