flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

March reports record gains in multifamily rent growth in 20 months

Multifamily Housing

March reports record gains in multifamily rent growth in 20 months

Multifamily rent growth increased $8 during March 2024, to $1,721—the largest increase in 20 months according to a Yardi Matrix National Multifamily Report.


By Quinn Purcell, Managing Editor | April 9, 2024
Brown modern apartment buildings over blue sky. New multifamily complex in Kyiv, buildings exterior and city life concepts
Photo courtesy Adobe Stock

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.
National Average Rents. Courtesy Yardi Matrix


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.

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


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

Click here to read the full Yardi Matrix report.

Related Stories

Multifamily Housing | Aug 12, 2019

Multifamily Amenities 2019: Rethinking the $30,000 cup of coffee

What amenities are “must-have” rather than “nice to have” for the local market? Which amenities will attract the renters or buyers you’re targeting? The 2019 Multifamily Amenities Survey measured 113 amenity choices.

| Aug 9, 2019

Whirlpool Debuts Smart All-In-One Washer and Dryer

Whirlpool washer and dryer in one machine can provide laundering solutions in apartments with limited space.

| Aug 9, 2019

'Buildings Don't Lie': A building science reference book worth your time and money

Review of "Buildings Don't Lie," by engineer Henry Gifford.

| Aug 8, 2019

Wilsonart Engineered Surfaces to acquire Czech firm Technistone

U.S. manufacturer Wilsonart, maker of High Pressure Laminate, Quartz, Solid Surface, Coordinated TFL and Edgebanding products, moves to acquire Technistone.

Multifamily Housing | Aug 7, 2019

New start, new life, new friends: Student residence life in the age of Instagram

When it comes to the design and space planning of your residence life program, the quality of the space you create will be reflected in the social media feeds of your students.

Multifamily Housing | Aug 6, 2019

Using P3s to create affordable housing, public services

How the city of Chicago and nonprofit groups partnered to build three libraries plus affordable housing in underserved neighborhoods.

Multifamily Housing | Aug 3, 2019

A plant—or at least its image—grows in Brooklyn

A 90-foot mural overlooks the courtyard of a new residential building.

| Aug 2, 2019

Closet System Adds Value to Grand Rapids Apartment Community

20 Fulton Street East is a 12-story residential community in downtown Grand Rapids, Mich., developed by Brookstone Realty Management, where Organized Living's closet system was installed by dealer Rayhaven Group.

Multifamily Housing | Jul 31, 2019

Amenities war no more? Research report explores multifamily market

Multifamily developers show no signs of pulling back on specialty spaces and unique offerings in an effort to attract high-quality tenants, according to new research from Multifamily Design+Construction.

Multifamily Housing | Jul 31, 2019

100% affordable housing development features 62-units for low-income households

Magnusson Architecture + Planning is designing the project.

boombox1
boombox2
native1

More In Category

Curtain Wall

7 steps to investigating curtain wall leaks

It is common for significant curtain wall leakage to involve multiple variables. Therefore, a comprehensive multi-faceted investigation is required to determine the origin of leakage, according to building enclosure consultants Richard Aeck and John A. Rudisill with Rimkus. 




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021