Occupancy rates increased year over year in most of the top 10 rent growth markets according to a September report from Dallas-based Axiometrics. And while Florida is heating up, the Washington, D.C., area is certainly cooling down.
Nationally, occupancy improved by about 29 basis points across all metropolitan statistical areas, according to the data. Yet, annual effective rent growth declined nationally, from 3.17 percent in August to 2.99 percent in September.
Florida markets are seeing the most popularity and growth in rent and occupancy as Naples, Bradenton and Cape Coral areas took the top three places on the list.
Meanwhile, markets in the metropolitan Washington D.C. area saw some of the largest falls in rent growth and occupancy. The 57-basis point occupancy drop in the Bethesda, Md. market had a damaging effect, landing the area on the bottom 10.
But at least Bethesda saw some rent growth. Washington, D.C. and the surrounding Virginia was ranked as the second-worst market for rent growth compared to a year ago, while registering a 40 basis point drop in occupancy year-over-year.
Top 10 Effective Rent Growth Markets
1. Naples-Marco Island, Fla., 9.51 percent
2. Bradenton-Sarasota, Fla., 9.09 percent
3. Cape Coral-Fort Myers, Fla., 9.04 percent
4. Oakland-Fremont-Hayward, Calif., 8.91 percent
5. Corpus Christi, Texas, 8.19 percent
6. Portland, Ore., 7.8 percent
7. San Francisco, 7.39 percent
8. Denver, 7.04 percent
9. Seattle,6.95 percent
10. Reno, Nev., 6.49 percent
Bottom 10 Effective Rent Growth Markets
1. Little Rock, Ark., -2.28 percent
2. Washington, D.C., -1.5 percent
3. Albuquerque, N.M., -1.28 percent
4. Chattanooga, Tenn., -1.01 percent
5. Augusta, Ga., -0.58 percent
6. Winston/Salem, N.C., -0.54 percent
7. Philadelphia, -0.23 percent
8. Bethesda, Md., 0.17 percent
9. Montgomery, Ala., 0.07 percent
10. Birmingham, Ala., 0.18 percent