In 2014 the Rental Housing market grew an annual pace of 3.3%, with occupancy rates at 95% (according to MPF Research)
If you’re looking to grow your rental portfolio in 2015, where should you start? Among the most obvious places would be the best performing rental markets of 2014! Last year was a surprisingly strong market for growth among rental housing throughout out the entire US, growing an an annual pace of 3.3 percent with occupancy at 95%.
Below are the top 10 markets in the United States, as measured by annual rent growth percentage (annual rent growth equals “effective rent” in this case).
Top 3 takeaways:
1) The top 3 cities are all from the Bay Area in California, and continued their strong growth from the previous year. Each had between 6-7% annual growth in 2013, and between 9-12% in 2014.
2) Northeast and mid-Atlantic markets are missing from the list of top rent growth performers! To some degree, there could be a weather-related influence on these results. 2014 was a very cold winter in this region!
-3) Half of the top 10 markets (Oakland, San Jose, San Francisco, Denver, & Portland) coincide with “10 Places Millennials Are Moving For Bigger Paychecks”. (You do have a strategy to target Millennials for your rentals, don’t you!?)
In 2015, market-research firm Reis expects the rental market to continue to grow:
“Asking rent is expected to increase an average of 3.3 percent nationwide next year, which is generally consistent with 2014 numbers, according to market-research firm Reis.”
*photo credit- https://www.reis.com/
What’s your strategy for growing your rental portfolio in 2015?