By Shane Omundsen on June 24th, 2021
The headline rate of U.S. property price growth quickened in May, powered by accelerating increases in apartment prices and gains across all major property types, the latest RCA CPPI: US summary report shows. The US National All-Property Index grew 0.8% from April and 8.9% from a year ago.
Apartment sector prices were the fastest growing in May at 10.1% year-over-year, overtaking industrial at 9.5%. Office price growth came in at 2.9% and the retail sector turned in a 2.3% annual gain.
Suburban office properties continued to drive price growth in the office market, posting a 4.5% year-over-year increase. CBD office prices, meanwhile, declined 5.5%. The CBD office index has not registered a positive annual return since August.
As shown in the latest edition of US Capital Trends, also released this week, deal activity in the apartment sector has been the strongest among the major property types so far in 2021. Transaction volume in the first five months of the year has surpassed the same period in 2020 and the years leading up to the pandemic.
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To learn more about the RCA CPPI (Commercial Property Price Indices) and to sign up for reports, visit rcanalytics.com. If you are an RCA client you can access RCA CPPI and US Capital Trends reports and conduct your own pricing analysis in the Trends silo of the RCA website.