Small Market Rent Growth Outperforms Larger Metros

For the past year and a half, smaller apartment markets have garnered stronger rent growth than their large market counterparts. At the end of 2024, the annual change in effective asking rents among the nation’s largest 50 apartment markets (except New York, which would throw off the weighted average if included) registered essentially flat at just 0.1%. Among smaller markets with an apartment base of about 24,000 units (which includes the likes of Fort Collins, CO and Salinas, CA) to just over 100,000 units (as in Providence, RI and Oklahoma City, OK), rent growth was considerably stronger at 1.4%. This trend has been consistent since about mid-2023. While stronger rent growth among smaller markets can be inspired by lower inventory growth rates, the more likely scenario is that these markets are less likely to see drastic fluctuations in performance. Smaller markets display more resilience during hard times, missing the declines seen in bigger markets. At the same time, smaller locales don’t benefit from the same upside as larger markets during good times, either.

For more information on the state of small apartment markets across the U.S., including forecasts, watch the webcast Market Intelligence: Small Markets Outlook.