Top 10 Markets with the Highest Rent Growth

If you buy rental properties, and multifamily specifically, you probably understand the importance of investing in a market that has “organic rent growth”, which simply means a market with increasing rents as a result of supply and demand.

Investing in a market with a positive rent growth is one of a set of criteria for investing in a real estate market.

Over the past year, rent growth was strongest in Florida and Western markets, especially Jacksonville, Orlando and Tampa.

Here are the top 10 markets with the highest rent growth over the past 5 years:

Market # 10 Austin, TX

2013 Average Rent: $978

2018 Average Rent: $1,361

5-yr % Rent Increase: 3.9%

1-yr % Rent Increase: 4.4%

Market #9 Denver, CO

2013 Average Rent: $883

2018 Average Rent: $1,597

5-yr % Rent Increase: 3.9%

1-yr % Rent Increase: 4.8%

Market #8 Chicago, IL

2013 Average Rent: $949

2018 Average Rent: $1,889

5-yr % Rent Increase: 9.9%

1-yr % Rent Increase: 4.9%

Market #7 Atlanta, GA

2013 Average Rent: $948

2018 Average Rent: $1,426

5-yr % Rent Increase: 5.0%

1-yr % Rent Increase: 5.3%

Market #6 Tampa, FL

2013 Average Rent: $940

2018 Average Rent: $1,291

5-yr % Rent Increase: 3.7%

1-yr % Rent Increase: 5.4%

Market #5 Orlando, FL

2013 Average Rent: $983

2018 Average Rent: $1,389

5-yr % Rent Increase: 4.1%

1-yr % Rent Increase: 6.1%

Market #4 Jacksonville, FL

2013 Average Rent: $927

2018 Average Rent: $1,065

5-yr % Rent Increase: 1.5%

1-yr % Rent Increase: 6.3%

Market #3 Los Angeles, CA

2013 Average Rent: $1,175

2018 Average Rent: $2,461

5-yr % Rent Increase: 10.9%

1-yr % Rent Increase: 6.6%

Market #2 Phoenix, AZ

2013 Average Rent: $870

2018 Average Rent: $1,014

5-yr % Rent Increase: 1.7%

1-yr % Rent Increase: 7.7%

Market #1 Las Vegas, NV

2013 Average Rent: $993

2018 Average Rent: $1,025

5-yr % Rent Increase: 0.3%

1-yr % Rent Increase: 7.9%

Source: US Census

About the Author:

Ellie is the founder of Blue Lake Capital, a real estate company specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.

Ellie is the host of a Unbelievable Real Estate Stories, a podcast that brings the true stories behind the deals, from the most successful real estate investors around the globe. Ellie started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.

Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can read more about Blue Lake Capital at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.