Multifamily rents fall for first time in 6 months
By Quinn Purcell, Managing Editor
Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741. Year-over-year growth remains largely unchanged at 0.8%.
According to the Yardi Matrix Multifamily National Report for August, the market's streak of rent growth was impacted by seasonality and the high number of deliveries to Sun Belt cities. However, demand still remains as the national occupancy rates sits at 94.7%.
Yardi Matrix Multifamily National Report for August 2024
While the dip in rent prices indicate incremental—not drastic—differences in the market as of August, change is still imminent.
“The Consumer Price Index has dropped under 3%, and with the housing component continuing to decelerate, inflation is getting close to the Fed's 2% target rate,” the report states. “Lower rates will be a relief to multifamily, potentially unlocking asset sales and refinancings, while reducing the pressure on properties that are underwater on their mortgages.”
