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Multifamily Occupancy and Rent Metrics Turn Positive in Q1 After Consecutive Declines
The first quarter in general, and March in particular, proved positive for multifamily metrics, according to RealPage Market Analytics and Yardi Matrix. Net apartment demand rebounded back into positive territory in Q1, ending a streak of three straight quarters of negative absorption, RealPage said.
However, the firm’s latest report added, “the rebound looked nothing like the 2021 demand surge, and more like a tepid step toward some semblance of pre-COVID normalcy.” With net absorption of 19,243 units during the quarter, Q1 marked an improvement over 2022’s negative absorption of 114,000 units. Yet, it was still the softest Q1 since 2013.
Similarly, March saw average U.S. asking rents for apartments rise $3 and those for single-family rentals increase by $5, according to Yardi Matrix. The month saw positive rent growth after four months of declines. However, year-over-year rent growth declined by 90 basis points for apartments and 80 bps for SFRs.
