The multifamily market was stable at the start of 2024, despite the pressure of a supply boom in some markets, according to the latest Yardi Matrix National Multifamily Report. The average asking multifamily rent remained flat at $1,710 in January for a 0.5% year-over-year increase, while occupancy decreased 50 basis points year-over-year in December, to 94.6%.
Yardi Matrix Multifamily Rent Report for January 2024
Rent growth remained highest in the Northeast and Midwest, while four of Yardi Matrix’s top 30 metros posted rent declines of 3% or more year-over-year. Occupancy was positive in one market and remained flat in two.
Rent growth will be impacted by supply in 2024, as Yardi Matrix forecasts a record 540,000 units to be delivered this year, and another 460,000 units in 2025.
National Average Rents
“Another year of weak growth is expected in 2024 largely due to the rapid increase in deliveries that stems from the sector’s strong performance, high liquidity, and favorable treatment in the 2017 tax bill,” say Matrix analysts.
New supply is inconsistent across the map, with the highest amounts in fast-growing tertiary and secondary markets, predominantly in the Sunbelt and Western regions. There, multifamily rent growth will likely remain tepid. Meanwhile, the weak supply in markets in the Northeast and Midwest is expected to keep rents rising.
Single-family rentals outperformed multifamily last month, with the average rent up $2 to $2,130 in January, a 1.5% year-over-year increase. The occupancy rate in December stood at 95.7%, up 10 basis points year-over-year, a sign that demand remained robust.
Click here to read the full Yardi Matrix National Multifamily Report.
Related Stories
Multifamily Housing | Apr 22, 2021
The Weekly Show, Apr 22, 2021: COVID-19's impact on multifamily amenities
This week on The Weekly show, BD+C's Robert Cassidy speaks with three multifamily design experts about the impact of COVID-19 on apartment and condo amenities, based on the 2021 Multifamily Amenities Survey.
Multifamily Housing | Apr 20, 2021
Two new residential towers set to rise in Nashville
Goettsch Partners is designing the buildings.
Multifamily Housing | Apr 14, 2021
Miami's Adela at MiMo Bay combines a residential building with an American Legion facility
The five-story residential building features 236 units and a new American Legions Facility for military veterans.
Multifamily Housing | Apr 12, 2021
103 income-restricted residential units under construction in Downtown Denver
KTGY is designing the project.
Multifamily Housing | Apr 2, 2021
250-unit rental building opens in Brooklyn
CetraRuddy designed the project.
Multifamily Housing | Mar 30, 2021
Bipartisan ‘YIMBY’ bill would provide $1.5B in grants to spur new housing
Resources for local leaders to overcome obstacles such as density-unfriendly or discriminatory zoning.
Multifamily Housing | Mar 30, 2021
ProCONNECT Multifamily, ProCONNECT Single-Family open for Developers, Builders, Architects
Sponsors and Attendees can still sign up for ProCONNECT Multifamily April 21-22, ProCONNECT Single-Family for May 18-19
Multifamily Housing | Mar 28, 2021
Smart home technology 101 for multifamily housing communities
Bulk-services Wi-Fi leads to better connectivity, products, and services to help multifamily developers create greater value for residents–and their own bottom line.
Multifamily Housing | Mar 27, 2021
Designing multifamily housing today for the post-Covid world of tomorrow
The multifamily market has changed dramatically due to the Covid pandemic. Here's how one architecture firm has accommodate their designs to what tenants are now demanding.
