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 | May 21, 2024
Baker Barrios Architects announces new leadership roles for multifamily, healthcare design
Baker Barrios Architects announced two new additions to its leadership: Chris Powers, RA, AIA, NCARB, EDAC, as Associate Principal and Director (Healthcare); and Mark Kluemper, AIA, NCARB, as Associate Principal and Technical Director (Multifamily).
MFPRO+ News | May 20, 2024
Florida condo market roiled by structural safety standards law
A Florida law enacted after the Surfside condo tower collapse is causing turmoil in the condominium market. The law, which requires buildings to meet certain structural safety standards, is forcing condo associations to assess hefty fees to make repairs on older properties. In some cases, the cost per unit runs into six figures.
Mass Timber | May 17, 2024
Charlotte's new multifamily mid-rise will feature exposed mass timber
Construction recently kicked off for Oxbow, a multifamily community in Charlotte’s The Mill District. The $97.8 million project, consisting of 389 rental units and 14,300 sf of commercial space, sits on 4.3 acres that formerly housed four commercial buildings. The street-level retail is designed for boutiques, coffee shops, and other neighborhood services.
Affordable Housing | May 14, 2024
Brooklyn's colorful new affordable housing project includes retail, public spaces
A new affordable housing development located in the fastest growing section of Brooklyn, N.Y., where over half the population lives below the poverty line, transformed a long vacant lot into a community asset. The Van Sinderen Plaza project consists of a newly constructed pair of seven-story buildings totaling 193,665 sf, including 130 affordable units.
MFPRO+ News | May 13, 2024
Special multifamily report indicates ‘two supply scenarios’
Could we be headed towards a “period of stagflation?” That's the question Andrew Semmes, Senior Research Analyst, poses in the Matrix May 2024 Multifamily Rent Forecast update.
MFPRO+ News | May 10, 2024
HUD strengthens flood protection rules for new and rebuilt residential buildings
The U.S. Department of Housing and Urban Development (HUD) issued more stringent flood protection requirements for new and rebuilt homes that are developed with, or financed with, federal funds. The rule strengthens standards by increasing elevations and flood-proofing requirements of new properties in areas at risk of flooding.
Adaptive Reuse | May 9, 2024
Hotels now account for over one-third of adaptive reuse projects
For the first time ever, hotel to apartment conversion projects have overtaken office-to-residential conversions.
Mass Timber | May 8, 2024
Portland's Timberview VIII mass timber multifamily development will offer more than 100 affordable units
An eight-story, 72,000-sf mass timber apartment building in Portland, Ore., topped out this winter and will soon offer over 100 affordable units. The structure is the tallest affordable housing mass timber building and the first Type IV-C affordable housing building in the city.
MFPRO+ News | May 8, 2024
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.
Senior Living Design | May 7, 2024
Living community opens for seniors seeking affordable housing
San Diego-based nonprofit affordable housing developer Community HousingWorks (CHW) celebrates the opening of Puesta del Sol Apartments, a new development with 59 apartments for adults 55 years and older.