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Inner Ring submarkets lead multifamily rent growth

Jun 13, 2024, 10:18 AM by Matt Mowell

Fewer people may be working full time in Downtown offices, but renter demand has been keen for living in urban-adjacent neighborhoods that offer walkability and proximity to entertainment and other amenities. Since Q1 2022, submarkets that are immediately adjacent to downtown (so-called Inner Ring submarkets) have seen annual multifamily rent growth of 3%, outstripping lower-density suburbs and office-dominated Downtowns. The traditional suburbs have also benefited from millennials—an urban-inclined generation—forming families and seeking more space.

Current trends likely have staying power. With more companies requiring employees to work from the office, at least part of the time, Inner Rings shorten commuting times, while catering to lifestyle choices that place a premium on walkability and increased living space.

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