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Rents are likely to rise the most for class-B apartments, and the least for class-C and -D units.

Bendix Anderson | Jan 15, 2019 via NREI.com

Rents are likely to rise faster for older, class-B apartments in 2019 than for any other class of apartment property.

“We expect Class-B to continue to have the strongest average rent growth, as it has through recent history,” says Andrew Rybczynski, senior consultant at research firm the CoStar Group.

“While occupancy is sky high in class-C product, rent growth in that sector is beginning to slow a little,” says Ron Willett, chief economist for MPF Research, a RealPage company.

 

Slowdown for class-C apartments

Rents will probably not grow as quickly for class-C apartments in 2019, compared to the year before.

“That reflects affordability constraints for the renters who live in that lower-end product,” says Willett.

Many of the people who live in class-C apartments are already paying a large share of their income in rent. Rents climbed 2.9 percent for class-C apartments in 2018. “The 2019 result likely will slip a little more to around 2.5 percent.”

CoStar predicts rents will rise 2.6 percent for class-C units in 2019, on averages. That’s up slightly from 2.5 percent the year before.

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