We have updated the Hedgeye Apartment Rent tracker for August data from Apartment List (see link below) and ROC figures are flying off the scale to the upside, particularly in Sunbelt markets which are lapping the remaining easy Y/Y comparisons. With the August reading, every significant REIT submarket is now trending positive on a Y/Y basis with the exception of Oakland, CA. California, specifically, has obviously been a laggard on both a 1-year and 2-year ROC basis, but is now very clearly in the early innings of a rental rate recovery, supporting our recent additions of Coastal Gateway names AVB and EQR as Best Idea Longs with each name supporting ~40% exposure to Northern and Southern California. Transacted rents have broadly trended positive sequentially across the key REIT submarkets since February. A few notable callouts:
- Florida Y/Y ROC: For Lauderdale +17%, Jacksonville +23%, Miami +20%, Orlando +21%, Tampa +30%
- New York +14% Y/Y
- Texas Y/Y ROC: Austin +19%, Dallas +12%, Houston +8%, San Antonio +11%
Please call or e-mail with any questions.
Rob Simone, CFA
Managing Director
Twitter: @HedgeyeREITs
Cell:
