The table above shows the 12 submarkets with the strongest annual effective rent growth in February 2015 (out of submarkets with 1,000 or more apartment units). The submarket with the highest annual effective rent growth in February 2015 was North Alameda, a submarket of Oakland.
The Oakland MSA had the highest annual effective rent growth among Axiometrics’ top 50 markets based on inventory in February 2015 – and for most of the past year – so perhaps it seems appropriate that two of Oakland’s submarkets are on the top of the list. Fort Myers, a submarket of Cape Coral, FL, had the third strongest submarket rent growth rate in February, and the MSA had the highest effective rent growth out of all the markets – primary, secondary and tertiary – tracked by Axiometrics.
Interesting to note that eight(!) of Denver’s submarkets are on the top 12 list – 75% of the table. Denver has 25 submarkets, and most of those on the list above are relatively centrally located, although the two centermost submarkets, Denver-Central and Denver-Downtown, did not make the list.
The Denver MSA also did well overall, catapulting to second place among the top 50 markets in February 2015. A lot of new apartment supply has been delivered to the Denver Metropilitan Statistical Area (MSA) in the past few years, whereas Oakland has not yet reached its long-term supply average. Still, both MSAs are holding strong