Shafiq Hirani CCIM shows why national rent averages hide the real story. New York is up 5.6%, San Francisco up 4.7%, but Austin is down 4% and Phoenix down 2.7%. Gateway cities with tight supply are thriving while overbuilt Sunbelt markets are struggling.
That sounds bad. But national averages in apartment data are almost always misleading. The national number is being dragged down by a handful of specific markets that massively overbuilt. And what is happening in those markets is very different from what is happening in yours. This report tells 2 completely different stories depending on where you own. In gateway cities, rents are growing strongly. New York led the country with 5.6% annual rent growth. San Francisco followed at 4.7%. Chicago came in at 2.6%. These are markets with limited new supply, strong job recoveries, and high barriers to entry. If you own in a gateway or supply-constrained market, this report actually shows your building is in a strong position. In Sunbelt markets, rents are falling. Austin rents dropped 4% year over year. Denver fell 3.1%. Phoenix fell 2.7%. Why?
