National Multifamily Report – May 2024

The average year-over-year asking rent marked the fourth consecutive month of increases.

chart with YoY rent growth May 2024
Year-over-year multifamily rent growth, all asset classes. Chart courtesy of Yardi Matrix

The U.S. multifamily market reported moderate gains in the middle of the second quarter, with the average asking rent up for the fourth consecutive month, according to the latest Yardi Matrix survey of 140 markets. Rents rose $6 to $1,733 for a 0.6 percent increase year-over-year in May, up 1.0 percent year-to-date, which is half the average growth rate registered in the five years before the pandemic. National occupancy remained at 94.5 percent in April. Meanwhile, the single-family rental market continued to outperform multifamily, with rents up 1.4 percent year-over-year, or $6 to $2,166 in May.

Rent growth remained highest in the Northwest and Midwest, with New York City (4.8 percent year-over-year), Columbus (3.6 percent), Kansas City and New Jersey (both 3.4 percent) in the lead. At the opposite end of the spectrum remained Austin (-5.8 percent), while most other Sun Belt metros posted declines of 2.4 percent or less. Occupancy dropped in all but one of the top 30 Yardi Matrix metros, with the Las Vegas rate remaining flat. In four metros, the rate fell is now below 93.0 percent—Atlanta (92.4 percent), Houston (92.5 percent), Austin (92.9 percent) and Dallas (92.9 percent).

On a month-over-month basis, the asking rent rose 0.3 percent, with Lifestyle (0.4 percent) slightly surpassing Renter-by-Necessity (0.3 percent). Denver and New York (both 0.9 percent) and Raleigh (0.8 percent) topped the ranking. Three markets recorded minor declines—Phoenix, the Twin Cities and Charlotte (all -0.1 percent). New York and Las Vegas posted the largest increases in Lifestyle (both 1.0 percent), and Denver (0.9 percent), Washington, D.C. (0.8 percent) led in RBN. Notably, Austin recorded gains of 0.5 percent in Lifestyle and 0.4 percent in RBN.

SFR market outperforms multifamily

Demand remained healthy, sustained by enduring job growth and high mortgage rates. Headwinds include a slowing employment rate and robust inventory expansion in Sun Belt markets, which is anticipated to persist through the end of 2025. Meanwhile, transaction activity remained tepid, with $19.3 billion in multifamily assets trading nationally through May, 24.0 percent below the volume recorded during the same period last year. While opportunities are still available, investors have to search into segments such as distress, “hidden gem” markets and niche property types.

The average asking rent in the single-family build-to-rent segment rose 1.4 percent year-over-year through May, 10 basis points below the previous month, a $6 increase to $2,166. Occupancy fell 10 basis points to 95.3 percent in April, higher in RBN (96.7 percent) than in Lifestyle (95.0 percent). Institutional SFR growth is mainly powered by build-to-rent, bolstered by control over the quality of construction, on-site maintenance and amenities.


Read the full Yardi Matrix multifamily real estate report.

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