Multifamily rent growth reached a new record in March 2024, recording the largest gain in 20 months. Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
In the March 2024 National Multifamily Report, Matrix’s data provides “some level of comfort” for worried market observers. While 13 of the top metros had negative rent growth over the past year, only two metros reported negative growth in March.
![Graph of National Average Rents for multifamily housing since March 2022.](/sites/default/files/inline-images/Screen%20Shot%202024-04-09%20at%209.35.14%20AM.png)
Where is multifamily rent growth the highest?
As the economy continues to create jobs, with household growth boosted by immigration and wage growth, demand for multifamily units continues to rise. Markets in the midwest, such as Columbus, Ohio, Kansas City, Mo., and Indianapolis, Ind., have the highest multifamily rent growth. These metros trailed only New York City, N.Y., which topped the list with 5% year-over-year rent growth.
In March, San Francisco, Calif., was the only metropolitan city to report a growth in occupancy rate (0.1%) year-over-year. On the other hand, 21 metros have occupancy rates down by 0.5% or more, including Atlanta, Ga., and Indianapolis (both down 1.2%).
National Lease Renewals
The national lease renewal rate averaged 64.8% at the beginning of 2024—the first time it’s dropped below 65% in more than two years.
Lease renewals were highest in metros like New Jersey (82.6%), Philadelphia, Pa. (77.4%), and Miami, Fla. (70.4%); renewals were lowest in San Francisco (53.5%), Los Angeles (57.6%), and Austin, Texas (58.2%).
Renewal Rent Growth
Year-over-year renewal rent growth—the change for residents that are rolling over existing leases—declined in January 2024 as well, to 4.6 percent.
![Renewal rent growth and monthly lease renewal rates in top metros.](/sites/default/files/inline-images/Screen%20Shot%202024-04-09%20at%2010.22.42%20AM.png)
According to the report, renewal rents have been down every month since May 2023. The metros with the highest year-over-year renewal rent growth include Indianapolis (8%), San Diego (7.8%), and Orlando (7.7%). Just two metros reported negative growth, with Las Vegas, Nev. (–2%) and Austin (–1.5%) at the end of the list.
RELATED
- Multifamily rent growth rate unchanged at 0.3%
- Expenses per multifamily unit reach $8,950 nationally
- Multifamily rents stable heading into spring 2024
Overall outlook for multifamily housing in 2024
From the December 2023 National Multifamily Report by Yardi Matrix:
- Expenses, income, deliveries, and interest rates pose key challenges for the multifamily industry this year
- Though the market is expected to deliver over 500,000 units this year, there is a dramatic decrease in starts
- Recent interest rate declines alleviate potential distress for multifamily owners, but long-term stability remains uncertain
Related Stories
| Aug 11, 2010
USGBC honors Brad Pitt's Make It Right New Orleans as the ‘largest and greenest single-family community in the world’
U.S. Green Building Council President, CEO and Founding Chair Rick Fedrizzi today declared that the neighborhood being built by Make It Right New Orleans, the post-Katrina housing initiative launched by actor Brad Pitt, is the “largest and greenest community of single-family homes in the world” at the annual Clinton Global Initiative meeting in New York.
| Aug 11, 2010
Trump luxury condos in Jersey City get more luxurious
Only two years after opening, Jersey City-based Trump Plaza Residences is getting a facelift. Interior designer Benjamin Noriega-Ortiz of BNOdesign has been commissioned to create a fresh design for the residential tower's entrance and outdoor pool, cabana, and lawn spaces. Renovations on the 55-story, 443-unit luxury high-rise will be completed in two phases.
| Aug 11, 2010
Apartments offer skyline view of Houston
Perched atop a hill near downtown Houston, the Gables Memorial Hills residential tower will rise to eight stories and cover 2.68 acres. With an average unit size of 965 sf, the brick and cast-stone complex will consist of 70% one-bedroom units and 30% two-bedroom units, some of which overlook downtown.
| Aug 11, 2010
Sustainable features central to independent-living building
Architecture firm Perkins Eastman, together with Saint Johns on the Lake retirement community, plans to open a 21-story, 88-unit independent-living building for seniors by mid 2011. When the $46-million project is complete, it will offer residents a streetside café, art gallery, spa and wellness center, classroom, and community performance space.
| Aug 11, 2010
Historic building to be restored in Kansas City
Construction has begun on the conversion of the historic 17-story Home Savings Association building in Kansas City, Mo. The transformed structure, to be known as Grand Boulevard Lofts, will house 134 apartment units. The $18-million project, designed by architect Rosemann & Associates, follows a revitalization of downtown Kansas City, where there is high demand for affordable housing to ser...
| Aug 11, 2010
Old factory converted from hearth to home
A former briquette factory in Cologne-Frechen, Germany, was converted into a mixed-use building by Astoc Architects & Planners, Cologne, in association with Rheinischen Amt für Denkmalpflege—the Rhenish agency for historic preservation. The roughly 172,200-sf building includes a mix of residential condominiums, lofts, and leased commercial space.
| Aug 11, 2010
And the world's tallest building is…
At more than 2,600 feet high, the Burj Dubai (right) can still lay claim to the title of world's tallest building—although like all other super-tall buildings, its exact height will have to be recalculated now that the Council on Tall Buildings and Urban Habitat (CTBUH) announced a change to its height criteria.
| Aug 11, 2010
Luxury high-rise meets major milestone
A topping off ceremony was held in late October for 400 Fifth Avenue, a 57,000-sf high-rise that includes a 214-room luxury hotel and 190 high-end residential condominiums. Developed by Bizzi & Partners Development and designed by Gwathmey Siegel & Associates Architects, the 60-story tower in midtown Manhattan sits atop a smaller-scale 10-story base, which creates a street façade t...
| Aug 11, 2010
Mixed-use Seattle high-rise earns LEED Gold
Seattle’s 2201 Westlake development became the city’s first mixed-use and high-rise residential project to earn LEED Gold. Located in Seattle’s South Lake Union neighborhood, the newly completed 450,000-sf complex includes 300,000 sf of Class A office space, 135 luxury condominiums (known as Enso), and 25,000 sf of retail space.
| Aug 11, 2010
Triangular tower targets travelers
Chicago-based Goettsch Partners is designing a new mixed-use high-rise for the Chinese city of Dalian, located on the Yellow Sea coast. Developed by Hong Kong-based China Resources Land Limited, the tower will have almost 1.1 million sf, which includes a 377-room Grand Hyatt hotel, 84 apartments, three restaurants, banquet space, and a spa and fitness center.