Where are Class C rents growing most? In markets with little new supply. Class C rent growth topped 4% in 22 of the nation’s 150 largest metro areas, and nearly all of them have limited new apartment supply.
Most new construction tends to be Class A “luxury” because that’s what pencils out due to the high cost of everything from land to labor to materials to impact fees to insurance to taxes, etc., but when you build “luxury” apartments at scale, you will put downward pressure on rents at all price points.
Source: Jay Parsons
Multifamily Market News 