Apartment Market Growth in 2019
Apartments.com and CoStar Group looked at rental markets in the U.S. with more than 50,000 units and have compiled the hottest markets of 2019 according to number of new units, highest rent levels and rent growths, and decreases in vacancies.
With 19,522 apartment units built in 2019, Dallas-Fort Worth, Texas, leads the nation with the highest number of new units. For renters looking for a new home in Dallas, there are nearly 28,000 places to live available on Apartments.com currently.
The average market rent was $1,191 a month, growing about 2.3% last year. According to Apartments.com, the average apartment rent in Dallas is $969 for a studio, $961 for one bedroom, $1,436 for two bedrooms, and $1,652 for three bedrooms. Following behind Dallas-Fort Worth is New York City with 17,075 new units, Washington, D.C. with 12,852, Chicago with 10,012 and Denver with 9,547.
San Francisco had the highest recorded market rent level of 2019 in the nation. In the past year, apartment rent in San Francisco increased by 1.8%, with the market rent level now averaging at $3,110. There are more than 4,000 apartments available on Apartments.com for renters searching for a new home in San Francisco. Renters should be prepared to pay an average rent of $2,381 for a studio, $3,018 for one bedroom, $4,128 for two bedrooms, and $4,893 for three bedrooms.
After San Francisco, New York CIty has the next highest rent level of $2,833, followed by $2,770 in San Jose, California, $2,525 in San Rafael, California and $2,314 in Boston, Massachusetts
In 2019, Phoenix saw a 6.8% increase in market rent growth—the largest increase in the nation. Phoenix apartment rents average $828 for a studio, $975 for one bedroom, $1,139 for two bedrooms and $1,457 for three bedrooms. Other markets that saw great market rent growth in 2019 include Tucson, Arizona, with a 5.7% increase; Albuquerque, New Mexico, 5.1% increase; Las Vegas, Nevada, 4.6% increase; and Raleigh, North Carolina, 4.6% increase.
Charleston, South Carolina, saw the largest vacancy decrease of 300 basis points in 2019. The vacancy rate moved from 12.2% at the end of 2018 to 9.1% at the end of 2019. The top five markets that saw the largest vacancy percentage decreases include Charleston, South Carolina; Baton Rouge, Louisiana; El Paso, Texas; Madison, Wisconsin; and Grand Rapids, Michigan.
