by Jordan Brooks
Market Analyst | ALN Apartment Data , Inc .
MARKET UPDATE
Two-Bedroom Units Lead the Way in Recent Rent Growth
As the multifamily industry and the broader economy continue to move toward something more closely resembling normalcy , it is especially important to be mindful of performance trends and metrics below the surface market-level numbers . Just as specific subsets of the market performed differently in the face of the COVID-19 challenges , the path back will be different as well .
With that in mind , using conventional properties of at least 50 units , let ’ s take a look at how rents have performed for different unit types over the most recent six months as of this writing – September 2020 through February 2021 . One important reminder for all floorplan types is that in the highly seasonal multifamily industry , the fourth and first quarters are traditionally softer than the middle two quarters of the year .
Efficiency Units
Efficiency units managed average effective rent growth of 0.5 % to close February with the average unit leasing for $ 777 per month . Though not particularly flashy , this gain compares quite favorably to the 2.4 % retraction from the same period a year ago leading into the pandemic . Rent concessions for this group of units remain elevated . Almost 45 % of efficiency units were offering a new lease concession at the end of February , up from around 32 % of units to start September of 2020 . Whereas the availability of discounts increased , these units saw a decrease in the average discount value . The average lease concession at the end of the period was 3.5 weeks off a 12-month lease , down from 4.2 weeks off an annual lease six months ago .