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There’s Still Room For Multifamily Rent Growth

September 26, 2017

There’s Still Room For Multifamily Rent Growth

September 22, 2017 | Erika Morphy | GlobeSt.com

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The share of households with incomes that can support the average effective multifamily rent in the Washington DC region has dropped from 54.2% in 2006 to 50.9% in 2016. Nonetheless, JLL says in a research note, half of all households can afford the region’s average effective rent, and a significant share of households have incomes that can support much higher rent levels. It’s conclusion: there is still room for rent growth even though class A rents in the region have grown 3.2% annually, on average, over the past decade.

The reason, of course, is the large percentage of high-income earners: 28%, 29% and 39% of households in Washington DC, Suburban Maryland and Northern Virginia, respectively, earn more than $125,000 annually. Indeed, the share of households with incomes greater than $75,000 grew from 45.6% in 2006 to 53.6% in 2016.

As a rule of thumb: Households with incomes of $125,000 can afford monthly rents of $3.50 per square foot.

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Steve Siepak
Blue Vault session at the recent National Planning Holdings National Conference
September 13, 2017

The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.