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.
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.
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
Cladding and Facade Systems | Dec 20, 2022
Acoustic design considerations at the building envelope
Acentech's Ben Markham identifies the primary concerns with acoustic performance at the building envelope and offers proven solutions for mitigating acoustic issues.
Self-Storage Facilities | Dec 16, 2022
Self-storage development booms in high multifamily construction areas
A 2022 RentCafe analysis finds that self-storage units swelled in conjunction with metros’ growth in apartment complexes.
Sponsored | Resiliency | Dec 14, 2022
Flood protection: What building owners need to know to protect their properties
This course from Walter P Moore examines numerous flood protection approaches and building owner needs before delving into the flood protection process. Determining the flood resilience of a property can provide a good understanding of risk associated costs.
Sponsored | Multifamily Housing | Dec 14, 2022
Urban housing revival: 3 creative multifamily housing renovations
This continuing education course from Bruner/Cott & Associates highlights three compelling projects that involve reimagining unlikely buildings for compelling multifamily housing developments.
Multifamily Housing | Dec 13, 2022
Top 106 multifamily housing kitchen and bath amenities – get the full report (FREE!)
Multifamily Design+Construction's inaugural “Kitchen+Bath Survey” of multifamily developers, architects, contractors, and others made it clear that supply chain problems are impacting multifamily housing projects.
Mixed-Use | Dec 7, 2022
Bjarke Ingels’ first design project in South America is poised to open next year in Ecuador
In 2013, Quito, Ecuador’s capital, opened its new airport, which had been relocated from the metro’s center to an agricultural site 12 miles northeast of the city. Since then, Quito’s skyline has been reshaped by new, vertical structures that include the 24-story mixed-use EPIQ Residences, designed in the shape of a quarter circle by Bjarke Ingels Group (BIG).
High-rise Construction | Dec 7, 2022
SOM reveals its design for Singapore’s tallest skyscraper
Skidmore, Owings & Merrill (SOM) has revealed its design for 8 Shenton Way—a mixed-use tower that will stand 63 stories and 305 meters (1,000 feet) high, becoming Singapore’s tallest skyscraper. The design team also plans to make the building one of Asia’s most sustainable skyscrapers. The tower incorporates post-pandemic design features.
Multifamily Housing | Dec 7, 2022
Canada’s largest net-zero carbon residential community to include affordable units
The newly unveiled design for Canada’s largest net-zero carbon residential community includes two towers that will create a new destination within Ottawa and form a striking gateway into LeBreton Flats. The development will be transit-oriented, mixed-income, mixed-use, and include unprecedented sustainability targets. Dream LeBreton is a partnership between real estate companies Dream Asset Management, Dream Impact, and local non-profit MultiFaith Housing Initiative.
Student Housing | Dec 7, 2022
Cornell University builds massive student housing complex to accommodate planned enrollment growth
In Ithaca, N.Y., Cornell University has completed its North Campus Residential Expansion (NCRE) project. Designed by ikon.5 architects, the 776,000-sf project provides 1,200 beds for first-year students and 800 beds for sophomore students. The NCRE project aimed to accommodate the university’s planned growth in student enrollment while meeting its green infrastructure standards. Cornell University plans to achieve carbon neutrality by 2035.
Multifamily Housing | Dec 6, 2022
Austin's new 80-story multifamily tower will be the tallest building in Texas
Recently announced plans for Wilson Tower, a high-rise multifamily building in downtown Austin, Texas, indicate that it will be the state’s tallest building when completed. The 80-floor structure will rise 1,035 feet in height at 410 East 5th Street, close to the 6th Street Entertainment District, Austin Convention Center, and a new downtown light rail station.
