People are leaving their fast paced urban lives for more tranquil suburban complexes.
On average, suburban apartment complexes have shown greater resiliency through pandemic than their urban counterparts. Data from Zillow reveals urban rent growth has slowed nearly 2% while climbing 1.4% in suburban markets. Analysts note suburban renters (depending on the market) are benefiting from lower rents as they no longer worry about commutes and have lost access to their desirable amenities in their urban complexes due to safety precautions. Data remains mixed across urban & suburban areas across the country. This split was shown in more than half of large U.S. metro areas. The biggest gaps lay in Dallas-Fort Worth, Sacramento, San Francisco, and the greater New York City metro area. It is important to note the outliers in this data set. The cities in which urban areas have experienced inflows include Kansas City, Detroit, Baltimore, and Riverside, CA. At EM Capital, we are confident in our current market positioning as a majority of our properties lay on the outskirts of urban areas. We continue to pursue and underwrite properties in our core markets. Stay tuned for acquisition news.