Multifamily rents rose for the fourth month in a row, according to the May 2024 National Multifamily Report. Up 0.6% year-over-year (YOY), the average U.S. asking rent increased by $6 in May, up to $1,733.
The performance of the multifamily market continues to ebb and flow after five months into 2024. Steady growth is present, however mitigated by the rapid delivery pipeline in many markets, states the report.
National Average Rents
According to Yardi, demand remains especially positive in the Sun Belt markets. The Northeast and Midwest continue to report the highest rent growth, led by New York City, N.Y. (4.8% YOY), Columbus, Ohio (3.6% YOY), and Kansas City, Mo. (3.6% YOY).
Multifamily Rent Growth (YOY) in May 2024
Occupancy rates in the U.S. remained unchanged at 94.5% for the third straight month. Multifamily rent growth impacted The Northeast and Midwest the greatest, while hitting Atlanta, Ga., and Austin, Texas, hard with –3.2% and –5.8% growth, respectively.
Top 10 Metros (Year-Over-Year Rent Growth – May)
- New York City, N.Y.: 4.8% rent growth year-over-year
- Columbus, Ohio: 3.6% rent growth year-over-year
- Kansas City, Mo.: 3.4% rent growth year-over-year
- New Jersey: 3.4% rent growth year-over-year
- Washington, D.C.: 3% rent growth year-over-year
- Chicago, Ill.: 2.8% rent growth year-over-year
- Boston, Mass.: 2.6% rent growth year-over-year
- Detroit, Mich.: 2.4% rent growth year-over-year
- Philadelphia, Pa.: 2.4% rent growth year-over-year
- Indianapolis, Ind.: 1.9% rent growth year-over-year
Additionally, other Midwest markets saw great YOY rent growth as well. Louisville, Ky., had an overall growth of 4.8%, tying New York; Cincinnati, Ohio, saw a 3.5% growth; and Milwaukee, Wis., had a 3.4% increase year-over-year.
Top Metros (Month-Over-Month Rent Growth – May)
Short-term rent changes saw some Sun Belt markets rebound in May 2024. Average rents rose 0.3% month-over-month and provided modest gains to 26 metros.
Markets like Denver, Colo., and New York City, N.Y., had a monthly rent gain of nearly one percent. This is followed by Raleigh, N.C. (0.8%), Boston, Mass., and Detroit, Mich. (both 0.7%).
RELATED
- March reports record gains in multifamily rent growth in 20 months
- Multifamily rent growth rate unchanged at 0.3%
- Multifamily rents stable heading into spring 2024
“With high interest rates continuing to put a lid on transactions, investors in search of deals may have to consider such creative alternatives as distressed properties, underserved markets and niche property segments,” the report states.
Related Stories
MFPRO+ News | Sep 24, 2024
Major Massachusetts housing law aims to build or save 65,000 multifamily and single-family homes
Massachusetts Gov. Maura Healey recently signed far-reaching legislation to boost housing production and address the high cost of housing in the Bay State. The Affordable Homes Act aims to build or save 65,000 homes through $5.1 billion in spending and 49 policy initiatives.
MFPRO+ News | Sep 23, 2024
Minnesota bans cannabis smoking and vaping in multifamily housing units
Minnesota recently enacted a first-in-the-nation statewide ban on smoking and vaping cannabis in multifamily properties including in individual living units. The law has an exemption for those using marijuana for medical purposes.
Adaptive Reuse | Sep 12, 2024
White paper on office-to-residential conversions released by IAPMO
IAPMO has published a new white paper titled “Adaptive Reuse: Converting Offices to Multi-Residential Family,” a comprehensive analysis of addressing housing shortages through the conversion of office spaces into residential units.
MFPRO+ Research | Sep 11, 2024
Multifamily rents fall for first time in 6 months
Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741.
Legislation | Sep 9, 2024
Efforts to encourage more housing projects on California coast stall
A movement to encourage more housing projects along the California coast has stalled out in the California legislature. Earlier this year, lawmakers, with the backing of some housing activists, introduced a series of bills aimed at making it easier to build apartments and accessory dwelling units along California’s highly regulated coast.
MFPRO+ New Projects | Sep 5, 2024
Chicago's Coppia luxury multifamily high-rise features geometric figures on the façade
Coppia, a new high-rise luxury multifamily property in Chicago, features a distinctive façade with geometric features and resort-style amenities. The 19-story, 315,000-sf building has more than 24,000 sf of amenity space designed to extend resident’s living spaces. These areas offer places to work, socialize, exercise, and unwind.
Resiliency | Sep 3, 2024
Phius introduces retrofit standard for more resilient buildings
Phius recently released, REVIVE 2024, a retrofit standard for more resilient buildings. The standard focuses on resilience against grid outages by ensuring structures remain habitable for at least a week during extreme weather events.
Adaptive Reuse | Aug 29, 2024
More than 1.2 billion sf of office space have strong potential for residential conversion
More than 1.2 billion sf of U.S. office space—14.8% of the nation’s total—have strong potential for conversion to residential use, according to real estate software and services firm Yardi. Yardi’s new Conversion Feasibility Index scores office buildings on their suitability for multifamily conversion.
Adaptive Reuse | Aug 28, 2024
Cities in Washington State will offer tax breaks for office-to-residential conversions
A law passed earlier this year by the Washington State Legislature allows developers to defer sales and use taxes if they convert existing structures, including office buildings, into affordable housing.
Architects | Aug 28, 2024
KTGY acquires residential high-rise specialist GDA Architects
KTGY, an award-winning design firm focused on architecture, interior design, branded environments and urban design, announced that it has acquired GDA Architects, a Dallas-based architectural firm specializing in high rise residential, hospitality and industrial design.
