The multi-family rental market has undergone significant changes since the onset of the COVID pandemic, with certain cities showing dramatic growth while others have struggled to recover. Miami stands out with a remarkable 47% increase in effective rents, reflecting strong demand and population influx. Similarly, Boise City and Charlotte have experienced notable growth, with rents rising 38% and 32%, respectively. These cities, along with others like Sacramento and Chicago, have benefited from a combination of economic resilience and shifting demographics, particularly as more people seek out lifestyle changes post-pandemic.
On the other hand, tech-driven markets like San Francisco and San Jose have seen much more muted growth, with San Francisco rents still down 6% and San Jose only up by 7% since Q4 2019. The downturn in these cities can be attributed to the exodus of remote workers and the lingering effects of the pandemic on urban living preferences. This divergence in rent growth highlights the ongoing realignment within the U.S. housing market, where secondary and emerging markets are outpacing historically dominant urban centers, reflecting broader trends in work, lifestyle, and affordability.
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