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Fed Rate Hikes Loom Over Multifamily Rent Growth
Multifamily rents rose modestly in October amid weakening demand and decelerating year-over-year growth, Yardi Matrix says in its latest report. U.S. asking rents increased $3 in October to $1,727. Meanwhile, year-over-year growth fell to 8.2%, the lowest level since the summer of 2021.
“The deceleration in asking rents remains gradual, as every one of the Matrix top 30 metros produced year-over-year rent increases,” the report states. “But there are worries about how the multifamily market will react to the rapid increase in short-term interest rates as the Federal Reserve attempts to reduce inflation… The robust household formation that drove demand in 2021 is no longer in effect.”
In contrast to earlier this year, the single-family rental market is cooling as well, according to Yardi Matrix. The average U.S. asking rent was unchanged at $2,088 in October, while the Y-O-Y increase declined by 160 basis points to 6.6%.
- ◦Economy
