How Can We Help You?

Forecasting & Analytics

Driven by economists and leveraged by market makers.
CRE performance across major metros and asset classes. History and forecast by CBRE.

Thought leaders abound

Depth, breadth and rigor concentrated at all levels.
Synthesizing macro factors and leading indicators into actionable national, sector and market research.

Advantage is CBRE

Perspectives, scale and connections that work.
Commercial and cultural insight aligned with intellectual capital and experience to fuel informed real estate decision-making.

Which data are right for you?

Data views and extracts by scenario and on demand.
Check out the fundamentals, capital markets, and data tools now on our one-pager.

Experience the platform

See first hand why top investors, developers and financial institutions are clients.
Set a time that works for you.

Introducing CBRE's new
Live, Work, Play Index.

TRY IT NOW

Econometric Advisors' blog

Apartment rents: Unpacking the statistics

Feb 9, 2017, 08:22 AM by Matthew Vance

EA’s fourth quarter apartment data offered one surprising number: year-over-year effective rent growth of 0.2% for the Sum of Markets. This number is meant to represent the national trend in rent growth during 2016, but for most of us, it doesn’t exactly fit our experience. So, how did we arrive at 0.2%?

The apartment data we start with is building-level data; through a series of weighted averages, we aggregate it—from buildings into submarkets into markets—finally reaching a weighted statistic for our national "Sum of Markets" grouping. As it turns out, New York City's year-over-year effective rent growth for Q4 was -6.0%. As more than 13% of the units making up the Sum of Markets are located in New York City, the market's negative growth had a similarly outsized impact on the national weighted average. Without the New York metro, rent growth for the Sum of Markets would have been 2.3% in 2016—much more in line with expectations.

So let's look at that 2.3%: Which markets have been leading the charge, this late in the cycle? Many markets are still posting rent growth above 4%. Sacramento topped the list with a blistering 9.8%, while Atlanta, Phoenix and Seattle stood out again this quarter.

New York wasn’t the only drag on the aggregate. Other markets continue to soften and dipped negative when compared to year-ago levels. Most notable were the Bay Area (Oakland, San Jose and San Francisco), Houston and Philly.

Next week, we'll be releasing our quarterly recorded discussion of the 2016 multifamily numbers, in which we'll unpack the statistics a little further.

Ready to Get Started?

60 second demos.


WATCH NOW

Experience the platform.


TRY IT TODAY

Become a client.


NEXT STEPS

Global Research Tools

redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin play-btn line-arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard