Average rents for US multifamily apartments gained 2.8% ($3) in July to an all-time high of $1,409.
The survey of 127 markets also shows that average rents grew 3% ($41) year-to-date in July, evidence that there is still growth opportunity despite affordability and supply issues.
With some investors concerned that the current cycle may be ending, the gain reflects favorable economic conditions according to a new report from real estate software firm Yardi.
"One could say the market is experiencing typical summer growth, a good sign considering the length of the cycle, which has some worried that the party might be nearing its end," the report says. "Economic conditions remain favorable for the multifamily industry, especially in secondary markets that are leading the nation in employment growth."
Rents grew year-over-year in each of the top 30 metros in July, including Orlando (6.9%), Las Vegas (5.8%), the Inland Empire (5.5%) and Phoenix (4.9%).
Occupancy rates increased in the first half of 2018 to 95.2% from 95.0% at the end of 2017.
Even those metros among the top 30 which saw the largest increase in supply, with rent growth decelerating as the occupancy rate fell; have seen some positive signs this year.
Yardi says that the occupancy rates are healthy even as more supply is added due to the strong demand from growth of rental-age households, supported by economic fundamentals.
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