Is Income Growth a Reliable Predictor of Apartment Rent Growth? via Property Management Insider

Conventional wisdom says that rent growth is contingent upon income and job growth. Is that always true, and if so, to what degree?

MPF Research examined the relationship between apartment rent, income and employment levels in each of the top 50 U.S. metros over the past seven years. The results showed that while there appears to be a general relationship between the three, it’s not nearly as consistent as you might think.

The key finding: Income growth appears correlated with rent growth primarily in markets on the extremes. The relationship, however, is notably weaker in most metros – suggesting that income growth is often an unreliable predictor of rent growth.

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