Average U.S. multifamily rents rose another $19 in June to edge over $1,700 for the first time ever, according to the latest Yardi® Matrix Multifamily Report.
The increase was fueled by strong demand and rent growth throughout the country. Rent growth increased at least 10 percent year-over-year in 25 of Yardi’s top 30 metros. National occupancy rates were solid at 96 percent.
On a year-over-year basis, growth continues to slow down. In June, it decelerated by 50 basis points to 13.7 percent. That’s 130 basis points off the February peak of 15.2 percent.
Rents in the single-family build-to-rent (BTR) sector continue to grow as well. The average single-family BTR asking rent increased by $23 in June to an all-time high of $2,071. Year-over-year growth dropped by 90 basis points to 11.8 percent.
“The multifamily market is starting to show signs of deceleration in June but is still performing at extremely high levels. Year-over-year rent growth was down 50 basis points from May. While rent growth in 2022 is still higher than any previous year on record, it is the fourth month in a row year-over-year rent growth declined,” note Matrix analysts.
The expectation for the remainder of 2022 is for rents to increase at slower rates as the economy cools off. “Inflation rates will take a while to ebb, causing consumers to cut into savings and their ability to afford increasing rental rates will lessen as the year goes on,” states the latest report.
Learn more in the latest multifamily report.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
Related Stories
Mixed-Use | Jul 7, 2017
ZHA’s Mandarin Oriental hotel and residences employs ‘stacked vases’ design approach
The mixed-use tower will rise 185 meters and be located in Melbourne's Central Business District.
Multifamily Housing | Jun 28, 2017
Renters don’t just want nice apartments; they want communities packed with amenities
Based on a survey from the National Apartment Association, the most popular amenities are the ones that bring the community together.
Fire and Life Safety | Jun 22, 2017
After testing, seven tower blocks found to have similar cladding as Grenfell Tower
These blocks will undergo further testing to determine if they are safe.
Multifamily Housing | Jun 20, 2017
Coliving apartments look to fill affordability and availability gaps for urban workers
One provider, Common, emphasizes community in its buildings.
Market Data | Jun 16, 2017
Residential construction was strong, but not enough, in 2016
The Joint Center for Housing Studies’ latest report expects minorities and millennials to account for the lion’s share of household formations through 2035.
Multifamily Housing | Jun 7, 2017
Jersey Strong: Local suppliers step in to help renovate a homeless shelter in the Garden State
American Standard and Philips Lighting donate products and manpower.
Resiliency | Jun 7, 2017
New disaster-resilient infrastructure building and upgrades hope to keep Haven Plaza up and running
The affordable housing complex was hit hard during Hurricane Sandy, leaving residents without electricity or water.
Multifamily Housing | Jun 7, 2017
Multifamily visionary: The life and work of architect David Baker
For 35 years, architect David Baker has been a spirited voice for affordable housing, in San Francisco and beyond.
Wood | Jun 6, 2017
Shigeru Ban-designed residential structure poised to become world’s tallest hybrid timber building
The wood, concrete, and glass building will rise approximately 233 feet when finished.