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Apartment Rent Growth Expected to Accelerate in 2024’s Second Half
U.S. multifamily rent growth is expected to accelerate in the second half of 2024 as new construction completions decelerate and positive net absorption continues, CBRE reported. The first quarter saw average monthly rents grow 0.4% year-over-year to $2,163.
Notwithstanding a slight increase in the multifamily vacancy rate, which reached 5.5% in Q1, strong demand led to net absorption of 52,500 units, according to CBRE. This marked the third-strongest Q1 in more than 20 years and surpassed the pre-pandemic average for the quarter.
“Absorption has remained surprisingly resilient despite the record deliveries over the last few quarters,” said Kelli Carhart, leader of multifamily capital markets for CBRE. “Investors continue to display a strong conviction towards multifamily. We expect multifamily capital allocation and deployment to increase as the year progresses.”
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