While there is still much to be seen as we move ahead into June and gather final data on May, overall market impacts have varied and will continue to do so as some of the restrictions are being lifted. Nationally, a downward trend of rent increases month over month for April was -0.5%, one of the most significant drops since the Great Recession. This is also evident in the year-over-year increase of April being only 1.6%.
Yet, some markets have still remained strong, particularly when focusing on the niche demographic of what's known in the industry as "renters by necessity". Renters by necessity are generally housed in Class B and C properties, as they provide basic housing needs and affordability. Some of the sharpest declines in rent growth were seen (and are anticipated to continue for a time) in Class A luxury properties, while many Americans are likely choosing to remain conservative with expenses until a time of stabilization is re-captured.
The following list shows the top 10 markets with the lowest declines, and for some even continued gains, in rent increases for renters by necessity. However, there are variabilities amongst properties within a market of course. For example, while Atlanta is showing an increase of month-over-month rent growth of only 0.08%, we are seeing an average of 18% rent increases during May 2020 in some of our Atlanta properties.
As we continue to move through these tremendous shifts, we will actively monitor and continue to share this important and timely data with you.
10. Baltimore, MD
- Overall Population: 590,479
- Renter Occupied Households: 47%
- Month-Over-Month Rent Growth: -0.25%
9. Twin Cities, MN
- Overall Population: 437,069
- Renter Occupied Households: 55%
- Month-Over-Month Rent Growth: -0.19%
8. Las Vegas, NV
- Overall Population: 662,000
- Renter Occupied Households: 37%
- Month-Over-Month Rent Growth: -0.1%
7. Phoenix, AZ
- Overall Population: 1,703,078
- Renter Occupied Households: 36%
- Month-Over-Month Rent Growth: -0.1%
6. Philadelphia, PA
- Overall Population: 1,591,800
- Renter Occupied Households: 45%
- Month-Over-Month Rent Growth: -0.07%
5. Dallas, TX
- Overall Population: 1,382,267
- Renter Occupied Households: 42%
- Month-Over-Month Rent Growth: 0%
4. Atlanta, GA
- Overall Population: 523,738
- Renter Occupied Households: 57%
- Month-Over-Month Rent Growth: 0.08%
3. Houston, TX
- Overall Population: 2,340,888
- Renter Occupied Households: 39%
- Month-Over-Month Rent Growth: 0.1%
2. Sacramento, CA
- Overall Population: 521,769
- Renter Occupied Households: 40%
- Month-Over-Month Rent Growth: 0.15%
1. Tampa, FL
- Overall Population: 413,704
- Renter Occupied Households: 44%
- Month-Over-Month Rent Growth: 0.37%
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About Ellie Perlman
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.
