National Multifamily Report – July 2024
Advertised asking rents increased $4 to $1,743 in July, according to Yardi Matrix.
The U.S. multifamily market entered the second half of the year on a promising note, sustained by consistent economic growth and demographics, according to the latest Yardi Matrix survey of 140 markets. The average national publicly advertised asking rent rose $4 to $1,743, for a 0.8 percent year-over-year increase. The average occupancy rate in stabilized properties in June marked the seventh consecutive month at 94.6 percent, down 0.4 percent year-over-year. According to the national multifamily report, performance was also strong in the single-family rental market, with advertised asking rents up $5 to $2,171, up one percent year-over-year in June.
Compared to long-term levels, year-over-year multifamily rent growth was weak but consistent. Gateway metros in the East and secondary markets in the Midwest led the way, headed by New York City (5.2 percent year-over-year), Washington, D.C. (4.0 percent), Kansas City (3.4 percent), Columbus and New Jersey (both 2.9 percent). High supply metros in the Sun Belt continue to post rent contractions, evidenced by Austin (-5.7 percent), Atlanta (-3.3 percent) and Raleigh (-2.8 percent). The average occupancy rate in stabilized assets increased in Las Vegas (0.7 percent year-over-year to 93.6 percent) and Twin Cities (0.1 percent to 95.0 percent).
On a month-over-month basis, the multifamily report shows advertised asking rents rose 0.2 percent in July, up in 15 of the top 30 metros tracked by Yardi Matrix. Rent growth was up 0.2 percent in the Renter-by-Necessity segment, and 0.1 percent in the Lifestyle segment.
The nation’s GDP rose 2.8 percent in the second quarter, and the economy added 1.3 million jobs in the year’s first half. Signs point to a cooldown, but the worst-case scenario will likely be a soft landing. The evolution of inflation, the consumer price index and the personal consumption expenditures price index point to a chance that short-term rates will be cut sooner and more deeply than expected.
SFR growth’s slow rebound
The single-family rental market rebounded, albeit at a slower pace according to the national multifamily report. Advertised asking rents in the segment rose $5 to $2,171 in July, for a 1.0 percent year-over-year increase.
Occupancy inched down to 95.3 percent in May, with RBN at 96.7 percent and Lifestyle at 95.0 percent. Markets with high levels of new supply posted rent declines, such as Orlando (down 1.1 percent year-over-year to $2,362) and Savannah, Ga. (down 1.5 percent to $2,283).
Read the full Yardi Matrix multifamily real estate report.
