Let’s shift back to the world of multifamily metrics for today’s Daily Data Discussion post – specifically looking at the markets around the country with the largest gains in rental rates over the past year. 

As noted in multiple citations in both our blog and on the website, we derive market information from interviews with multiple brokers and property managers in a given market.  There is most often a slight variance when talking to different brokers or property managers when we seek out this information; the values reported represent an average of the information provided us. 

The media has reported recently that rental rate gains have been soft in the multifamily sector; in our database the average gain for the past year has been 2.5%.  As always, there are markets that perform far better than average, and far better than those typically identified by the media.  Of course, the emerging market investor is seeking markets in which rental rates have been or are languishing….

Here are some markets (the best five in our database as of today) that handily beat the average –

1)  San Francisco, CA  11.6%
2)  New Orleans, LA  10%
3)  Burlington, VT  8%
4)  Ogden, UT   8%
5)  Provo, UT   7.5%

Database Average:  2.5%
Database Median:  2.5%

Tomorrow we’ll look at the worst five markets in the country in terms of rental rate gains – in today’s market that means rental rate losses….

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