Denver Projected to Have Highest Increase of Multifamily Rents in Nation in 2016

According to estimates by Yardi Matrix, multifamily rental rates will continue to rise in 2016. The top five ‘hot markets’ of 2015 are expected to lead a 4.6% increase in apartment rental rates in 2016, which is actually down from 2015’s 6.5%, but still ahead of the eight-year 2.8% average.

Denver, once again, is the top market in the country with regards to rent increases, with an expected 11.2% hike in rental rates in 2016, followed by San Francisco (11%) and Portland (9.2%). The Yardi Matrix cites these larger than average increases to these markets because the cities are “home to intellectual hubs led by technology firms”, as well as boasting a Millennial-friendly lifestyle. Sacramento and Austin round out the top five markets based on rent growth.

For those looking for lower rent increases around the nation, look towards Richmond, the Twin Cities, and Washington D.C. where rents are expected to be flat (optimistically .8% growth).

In 2015, Integrated Properties, Inc. completed its 16M building; a 10-story mixed-use property located at 16th and Market in Lo-Do; which features four floors of high-end condominium rentals in the heart of lower downtown Denver. Integrated Properties later sold the building to LaSalle Investment.