According to the Yardi Matrix recent report, the average asking price for a one-bedroom apartment in the United States is now $1,622. This means investors are gaining on average up to 16% more than last year, though it also means that purchasing power per square foot is also on the rise. While these growth trends are great for multifamily investments, the reality is that these trends are likely to continue to level off during this current cycle.
Keep in mind that growth in the real estate industry is not uniform across markets. Some areas are seeing much higher demand than others, which means a greater chance for growth and prosperity to happen there. This is due in part to things like job availability, weather, net migration patterns, and other quality of life factors. It’s important to observe these trends as you assess your next investment opportunities. Just because a market was “hot” before, doesn’t mean that will always continue.
Here are the 5 best and worse rental growth markets in the United States as of March 2022:
5. Las Vegas-Henderson-Paradise, NV
- Year Over Year Rent Growth: 25.1%
- Median Rent: $1,623
- Percentage of Renters: 37.6%
4. Austin-Round Rock, TX
- Year Over Year Rent Growth: 25.9%
- Median Rent: $1,777
- Percentage of Renters: 55.6%
3. Tampa-St. Petersburg-Clearwater, FL
- Year Over Year Rent Growth: 31.10%
- Median Rent: $2,114
- Percentage of Renters: 33.5%
2. Orlando-Kissimmee-Sanford, FL
- Year Over Year Rent Growth: 35.00%
- Median Rent: $1,886
- Percentage of Renters: 45.3%
1. Miami-Fort Lauderdale-West Palm Beach, FL
- Year Over Year Rent Growth: 57.20%
- Median Rent: $2,988
- Percentage of Renters: 45.2%
The 5 Worst Markets for Rental Growth as of March 2022:
5. Pittsburgh, PA
- Year Over Year Rent Growth: 7.90%
- Median Rent: $1,485
- Percentage of Renters: 57.0%
4. Cincinnati, OH /KY / IN
- Year Over Year Rent Growth: 7.70%
- Median Rent: $1,395
- Percentage of Renters: 33.2%
3. Cleveland-Elyria, OH
- Year Over Year Rent Growth: 6.60%
- Median Rent: $1,383
- Percentage of Renters: 51.1%
2. Minneapolis-St. Paul-Bloomington, MN-WI
- Year Over Year Rent Growth: 5.30%
- Median Rent: $1,572
- Percentage of Renters: 53.3%
1. Detroit-Warren-Dearborn, MI
- Year Over Year Rent Growth: 0.70%
- Median Rent: $1,360
- Percentage of Renters: 44.0%
About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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