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
![National Average Multifamily Rents from Yardi Matrix May report](/sites/default/files/inline-images/Screen%20Shot%202024-06-11%20at%2010.27.23%20AM.png)
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.
![Multifamily rent growth by metropolitan area](/sites/default/files/inline-images/Screen%20Shot%202024-06-11%20at%2010.54.21%20AM.png)
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 | Jun 3, 2024
Seattle mayor wants to scale back energy code to spur more housing construction
Seattle’s mayor recently proposed that the city scale back a scheduled revamping of its building energy code to help boost housing production. The proposal would halt an update to the city’s multifamily and commercial building energy code that is scheduled to take effect later this year.
Resiliency | Jun 3, 2024
Houston’s buyout program has prevented flood damage but many more homes at risk
Recent flooding in Houston has increased focus on a 30-year-old program to buy out some of the area’s most vulnerable homes. Storms dropped 23 inches of rain on parts of southeast Texas, leading to thousands of homes being flooded in low-lying neighborhoods around Houston.
Affordable Housing | May 30, 2024
General contractor’s keys to a successful affordable housing project
General contractors can have tremendous influence over a project’s success in terms of schedule, budget, and quality. However, to ensure a project is put on this path, there are a few factors that must be considered.
MFPRO+ New Projects | May 29, 2024
Two San Francisco multifamily high rises install onsite water recycling systems
Two high-rise apartment buildings in San Francisco have installed onsite water recycling systems that will reuse a total of 3.9 million gallons of wastewater annually. The recycled water will be used for toilet flushing, cooling towers, and landscape irrigation to significantly reduce water usage in both buildings.
MFPRO+ News | May 28, 2024
ENERGY STAR NextGen Certification for New Homes and Apartments launched
The U.S. Environmental Protection Agency recently launched ENERGY STAR NextGen Certified Homes and Apartments, a voluntary certification program for new residential buildings. The program will increase national energy and emissions savings by accelerating the building industry’s adoption of advanced, energy-efficient technologies, according to an EPA news release.
Student Housing | May 28, 2024
Student housing remains strong in May 2024
Although the pace has slowed down this year, student housing preleasing for the 2024–2025 season reached 73.5% in April, 50 basis points year-over-year (YOY).
MFPRO+ News | May 24, 2024
Austin, Texas, outlaws windowless bedrooms
Austin, Texas will no longer allow developers to build windowless bedrooms. For at least two decades, the city had permitted developers to build thousands of windowless bedrooms.
Mass Timber | May 22, 2024
3 mass timber architecture innovations
As mass timber construction evolves from the first decade of projects, we're finding an increasing variety of mass timber solutions. Here are three primary examples.
Mixed-Use | May 22, 2024
Multifamily properties above ground-floor grocers continue to see positive rental premiums
Optimizing land usage is becoming an even bigger priority for developers. In some city centers, many large grocery stores sprawl across valuable land.
MFPRO+ News | May 21, 2024
Massachusetts governor launches advocacy group to push for more housing
Massachusetts’ Gov. Maura Healey and Lt. Gov. Kim Driscoll have taken the unusual step of setting up a nonprofit to advocate for pro-housing efforts at the local level. One Commonwealth Inc., will work to provide political and financial support for local housing initiatives, a key pillar of the governor’s agenda.