National Multifamily Report – August 2024
Advertised asking rates declined slightly, Yardi Matrix data shows.
The U.S. multifamily market prepares for potentially lower interest rates and slower growth, according to the latest Yardi Matrix survey of 140 markets. Following six consecutive months of gains, average U.S. advertised asking rents fell $1 in August, to $1,741, up 0.8 percent year-over-year. Occupancy in stabilized assets remained flat at 94.7 percent in July, despite high supply volumes. Likewise, advertised asking rents in single-family rentals fell $7 to $2,164 in August, up 0.7 percent year-over-year.
Gateway cities in the East and secondary markets in the Midwest remained leaders in year-over-year rent growth, with the highest gains recorded in New York City (4.8 percent), Kansas City (4.1 percent), Washington, D.C. (3.4 percent), Indianapolis (3.0 percent) and Boston (2.9 percent). Negative rent movement was highest in Austin (-5.5 percent), Raleigh (-3.4 percent), Phoenix (-2.9 percent), Orlando and Atlanta (both -2.7 percent).
The national occupancy rate remained at 94.7 percent for the fourth consecutive month in July, down 0.3 percent year-over-year. Of Yardi Matrix’s top 30 metros, occupancy increased in seven, and 13 had the average rate above 95 percent. Las Vegas posted the largest increase, up 0.9 percent to 93.6 percent. Occupancy rates dropped the most in Houston (-0.7 percent), Dallas, Kansas City, Austin and San Diego (all down 0.6 percent).
Seasonal adjustments become visible
On a month-over-month basis, U.S. advertised asking rents fell 10 basis points in August, due to a 20-basis-point decline in Lifestyle rents, which decreased in 19 of the top 30 metros. Meanwhile, Renter-by-Necessity rents inched up 10 basis points, marking increases in 13 markets. Detroit led in Lifestyle rent growth (1.1 percent) and Kansas City in RBN (1.1 percent), while the largest decline was posted by Las Vegas (-1.6 percent). At the start of a new seasonal slowdown, rent performance is further pressured by high supply and a slowing economy.
Multifamily transaction activity year-to-date through July resulted in a sales total of just $33.8 billion, nowhere near the $230 billion sales volume in 2021 and $200 billion in 2022. Yet, the prospect of interest rate cuts increases optimism in the market that activity will pick up.
Advertised asking rents for single-family rentals also declined, down $7 in August to $2,164, for a 0.7 percent year-over-year increase. Overall, SFR rents gained $14 year-to-date and $513, or 31.0 percent, since March 2020. Like multifamily, the rent decline came entirely from the Lifestyle segment, where rents dropped $9 month-over-month to $2,244. Meanwhile, RBN SFRs had occupancy at 96.6 percent in July and the average advertised asking rent at $1,823 in August.
Read the full Yardi Matrix multifamily real estate report.
