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Multifamily Rent Growth Rate Ticks Upward in July
Consistent economic growth and demographic trends sustained multifamily demand at the start of 2024’s third quarter, Yardi Matrix said Thursday. The average U.S. asking rent rose 0.8% year-over-year through July, or $4 to $1,743, a 20-basis-point increase in the growth rate. That includes a resumption of rent growth in high-supply markets where it had been negative, according to the latest Yardi Matrix National Multifamily Report.
Although the July Y-O-Y growth rate was weak by historical standards, “the market is exhibiting strength in many ways,” according to Yardi Matrix. Demand hasn’t faltered, and the national occupancy rate remained at 94.6% for the seventh straight month, down 0.4% Y-O-Y.
Gateway metros in the East and secondary markets in the Midwest continued to lead rent growth. The strongest performance was registered in New York City (5.2% growth), Washington, DC (4.0%) and Kansas City (3.4%). Conversely, rent growth remained negative in several Sun Belt metro areas, led by Austin (-5.7%), Atlanta (-3.3%) and Raleigh (-2.8%).
The single-family rental market continued to exhibit strength, with advertised asking rents up $5 in July to $2,171 and up 1% Y-O-Y. Demand is sustained by high cost of homeownership and the lack of available homes for sale, according to Yardi Matrix.
- ◦Lease
- ◦Development
