NO. 03 | CHART FOR THOUGHT

Median Household Income vs. Multifamily Rent Growth (2015-2020)

Median household income vs. multifamily rent growth
Median household income vs. multifamily rent growth
  • Sacramento, Inland Empire, and Phoenix have had some of the most impressive income and rent growth over the past 5 years. A large driver of demand stemmed from gateway employers seeking refuge in these low-cost markets accelerating job growth creating income and rent growth.
  • San Francisco, San Jose, and East Bay have high incomes but rent growth has been relatively muted. Rent control regulations and already elevated multifamily costs make it difficult to push rents despite incomes increasing.
  • In markets like Las Vegas, Richmond, and Sacramento rents are rising faster than incomes, whereas in Austin, Nashville and Seattle incomes are rising faster than rents. Part of the reason Austin, Nashville, and Seattle incomes have risen so quickly is due to the increase in tech-talent in a relatively low-cost market.