Apartment rent growth took a step backwards in October, according to reports from Yardi Matrix and RealPage. Yardi Matrix reported a $3 decline in the average U.S. asking rent to $1,718 and a 0.4% annual growth rate, while RealPage reported that asking rent growth was flat in October at 0.1% year-over-year, but net effective rents declined 0.56% from the previous month, the steepest October monthly drop since the Great Recession.
Rent growth turned negative in 14 of Yardi Matrix’s top 30 metros. Most of these markets, particularly in the Sun Belt, are impacted by a recent influx of supply and rapid rent increases over the past two and a half years, according to Yardi Matrix.
RealPage offered a comparable take: “It’s still all about supply. There’s still a lot of demand for apartments in 2023. Just not enough to keep pace with the nation’s biggest apartment construction spree in 50+ years. That wave came as a result of big rent growth and low vacancy of 2021 and early 2022.”
The rent growth picture was a little brighter in the single-family rental sector. There, Yardi Matrix reported that asking rents fell $2 in October to $2,121 and were up 1% percent Y-O-Y.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).