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Apartment Rent Growth Expected to Decelerate Further in Second Half of 2024
U.S. multifamily rent growth and occupancy have deteriorated since peaking in 2022, and the 2024 Multifamily Outlook from Yardi Matrix anticipates further deceleration in the year’s second half. Analysts at Yardi Matrix expect rent growth will be around 1.7% for the calendar year, well below the 24% gain recorded in 2021 and 2022.
“The market is contending with several counterbalancing conditions that soften growth,” according to the report. “Demand and absorption remain robust, but rent growth is restrained by increased supply and affordability.”
Inbound new supply is expected to continue to impact rents nationwide. Up to 553,000 of 1.2 million units under construction are forecast to be delivered by the end of 2024.
“Supply growth has climbed in recent years due to strong demand for units, rapid rent growth and an influx of development capital,” according to Matrix analysts. Between 2021 and 2023, 1.3 million units came on line, while in the first half of the 2010s decade only 858,000 units were delivered, according to Matrix tracking.
- ◦Lease
- ◦Development
