Multifamily rent growth approaches peak levels in April 2024

In its latest multifamily report, Yardi Matrix finds that the national average rent has increased for the second month in a row. Up year-over-year at 0.7 percent, the average asking rent in April has reached $1,725—a $6 increase from March 2024.

The national average rent is now just $2 less than the all-time high of $1,727 set last summer, according to the Matrix National Multifamily Report.

“The patterns of rent growth can also be viewed with some optimism,” the report states. “For one thing, demand is not limited by region or market size—it is widespread across the country.”

Multifamily Rent Growth in Top Metros

New York leads the top metros in rent growth at a 4.6% increase year-over-year. Midwest metros have positive absorption as well and are among the top rent growth leaders in the past year.

National Average Multifamily Rents

National average multifamily rent graph by Yardi Matrix

Second to New York in rent growth is Columbus, Ohio, a metropolitan area that is increasingly growing in popularity, followed by New Jersey; Chicago, Ill.; Kansas City, Mo.; and Washington, D.C.

Just four of the top 30 metros reported negative rent growth in 2024—Austin, Texas (–0.3%); Atlanta, Ga. (–0.2%); Raleigh, N.C. (–0.1%); and Tampa, Fla. (–0.1%).

Multifamily Absorption

More than 72,000 units were absorbed in Q1 2024, according to the report. The figure is below the average for the last six first quarters, but also the highest Q1 number since 2021.

Regionally, the Southwest absorbed the most units: 18,000 units, or 0.6% of stock. The Southeast follows (17,000) slightly below the average at 0.4 percent. The West (14,400) follows at 0.4 percent, while the Midwest (11,750), and Northeast (11,500) regions match the national average of 0.5 percent.

The largest metros with the highest absorption as a percentage of stock over the past year are Nashville, Tenn. (4.2%); Charlotte, N.C. (3.9%); Phoenix, Ariz. (3.5%); Miami, Fla.; and Austin, Texas (both 3.3%); and Raleigh, N.C. (3.2%).

National Lease Renewals

The national lease renewal rate averaged 65.8% in March 2024, the lowest average in nearly two years.

National multifamily lease renewal rates by metropolitan area in Yardi Matrix report

However, the renewal for March 2024 was up 80 basis points from February. Columbus, Ohio, had the highest renewal rent growth (10%), followed by Kansas City, Mo. (9.4%), and Miami, Fla. (7.7%). The three metros with negative renewal rent growth are San Francisco, Calif. (-0.6%), Austin, Texas (-1.4%), and Los Angeles, Calif (-15.4%).

According to Yardi Matrix, Los Angeles has struggled with “a weak job market, tepid demand—especially in the downtown—and a shortage of affordable product.”

Click here to read the full Matrix National Multifamily Report for April 2024.