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Forecast Calls for “Lackluster” Growth in Apartment Rents Through Year-End
Multifamily rents changed little in August due to seasonality and rising uncertainty about consumers’ financial health, Yardi Matrix reported. The average U.S. advertised rent fell $1 to $1,755 in August as year-over-year growth fell 10 basis points to 0.7%.
“Rent growth is expected to remain lackluster through year-end,” according to the latest Yardi Matrix National Multifamily Report. “Momentum is slowing across most metros, as only a few markets recorded more than 3% year-over-year growth. This deceleration is driven by supply rather than demand, as elevated deliveries have created a highly competitive leasing environment amid record absorption.
“However, supply pressures are beginning to ease, with most metros past their peak supply and new starts declining sharply due to the cost of construction and tighter financing,” the report stated.
Although demand has remained strong through mid-year, “operators are concerned that it will
soften through the second half of the year. Consumer budgets are tightening due to rising costs
and the softening job market.”
- ◦Lease
- ◦Development
