Older Multifamily Buildings Posting Stronger Rent Growth

Multifamily buildings constructed before 2010–approximately 13 years old or older—have posted strong rent growth of 4.6% on average over the last decade versus 3.4% for buildings after that benchmark, according to CBRE. 

The trend is mostly due to the fact that the older buildings have had lower average rents, leaving more room for growth since demand has intensified in the housing sector. The older properties have also experienced less volatility in their rent swings up and down or as the report said, “have been less affected by external shocks like recession.” This is known from CBRE’s analysis of the overall annual performance of multifamily properties since 1998, a time period that has experienced three recessions.