Home Price vs Multifamily Rent Growth by Market
NO. 08 | CHART FOR THOUGHT
- Home values increased in all of the Top 50 markets over the last year and only two markets saw negative rent growth (San Francisco and San Jose).
- The markets with multifamily rents and home prices growing at the most similar rates were: Las Vegas and Atlanta.
- Population growth is a good predictor of price and rent growth performance. Those seeing strong year-over-year population growth and office-using job growth (respectively below) were also those with the highest growth in housing costs: like Austin (2.4%, 10.4%), Phoenix (1.2%, 4.1%), and the Inland Empire (0.6%, 8.7%). The opposite was true for cities with relatively stagnant populations.
- Austin, Texas was in a class of its own in terms of home price appreciation. In the most recent set of Freddie Mac data, the median home price had increased by nearly 40% year-over-year. Austin attracted new residents and new businesses with high-paying jobs over recent years, which has contributed to the growth in home values.