The US rental market has seen some notable shifts in recent years, with Midwestern multifamily markets emerging as a leader in rent growth. According to a recent report from Yardi Matrix, Midwestern apartment markets have experienced the most substantial rent growth in the country over the past year. The Omaha market has seen an average rent growth of approximately 7% since the beginning of 2022.
Two key factors are driving Midwest rent growth:
- Changing demographic patterns. As millennials and Gen Zers reach their prime renting years, they are looking for affordable housing options in urban areas. The cost of living in the Midwest is generally lower than in many other regions, making it an attractive option for people who want to live in more affordable areas. This has led to a surge in demand for apartments in Midwestern cities like Omaha, resulting in a positive sign for multifamily real estate investors.
- Strength of the Midwestern economy. The Midwest has a population of over 68 million people and is home to a sizeable chunk of Fortune 500 companies. The region has quietly been experiencing an economic renaissance in recent years. As a result, job and wage growth have been strong in many Midwestern cities, creating a virtuous cycle of increased demand for rental housing.
The trend toward Midwestern multifamily markets outperforming others in rent growth will likely continue in the coming years. As more and more people flock to urban areas in search of affordable housing and job opportunities, Midwest cities are likely to see continued strong demand for rental properties.
As Midwestern cities continue to experience strong economic growth and attract new residents, they are emerging as a leading force in the rental market. Investors who recognize this trend early will likely be well-positioned for success in the coming years. Metonic is proud to have nearly 9,500 multifamily homes under management in the Midwest region and over 550 Midwest homes currently under construction. To learn more about Metonic and our multifamily strategy, visit Metonic.net or email us at email@example.com.