National Multifamily Report – November 2024
Year-over-year rent growth holds steady at 0.9 percent, according to Yardi Matrix.
The average U.S. advertised asking rent fell another $5 in November to $1,744, pressured by sustained inventory growth in Sun Belt metros, according to the latest Yardi Matrix survey of 140 markets. Year-over-year rent growth slid 10 basis points to 0.9 percent, consistent with the performance recorded throughout the year, at just under 1.0 percent. The national occupancy rate was unchanged year-over-year through October, at 94.7 percent. Progress in the SFR market was also sluggish, with rates down $7 in November to $2,150 and $25 below the peak in the summer.
Regionally, multifamily rent movement varied, with 16 of the Matrix top 30 metros registering increases year-over-year, while 14 posted rent contractions. Gateway metros in the East and secondary markets in the Midwest posted the highest gains, led by New York City (5.0 percent), Kansas City (3.4 percent), Detroit (3.2 percent), Washington, D.C. (2.8 percent), and Chicago and Indianapolis (2.7 percent). The largest rent contractions were recorded in Austin (-5.6 percent), Raleigh (-2.7 percent), Atlanta (-2.6 percent), Phoenix (-2.2 percent) and Orlando (-2.1 percent).
On a month-over-month basis, advertised asking rents fell 0.3 percent in November, with 25 of the top 30 metros posting declines. Lifestyle rents decreased 0.3 percent and Renter-by-Necessity declined 0.1 percent. Rent movement was flat or negative in 25 of the top 30 metros in Lifestyle and 23 of the top 30 in RBN. Tampa bucked the trend and posted strong gains in November, following decreases over the past year due to robust stock expansion. Advertised asking rents in the metro increased 1.0 percent overall, up 1.2 percent in RBN and 0.9 percent in Lifestyle. Meanwhile, Denver and Austin posted some of the largest drops. In Denver, rents declined 1.0 percent, down 1.0 percent in Lifestyle and 0.9 percent in RBN, while in Austin, rents dropped 0.9 percent, down 1.0 percent in Lifestyle and 0.8 percent in RBN.
Occupancy rebounds in some metros, expense growth moderates
The national occupancy rate was at 94.7 percent in October, unchanged year-over-year. Significant increases in occupancy were recorded in Las Vegas (1.0 percent) to 93.7 percent, Portland and Detroit (both 0.6 percent), Baltimore (0.4 percent) and San Francisco (0.3 percent).
Multifamily expense growth moderated, with expenses per multifamily unit in market-rate properties up 4.0 percent year-to-date, down from 9.0 percent in 2023 and 7.1 percent in 2022. Expenses in the affordable housing market increased 5.1 percent year-to-date, down from 8.3 percent in 2023 and 7.7 percent in 2022, according to Yardi Matrix Expert. Expense growth in both asset classes will likely continue to soften, as costs deriving from insurance, labor and maintenance are slowing, at least until the incoming administration changes current policies.
The single-family rental market marked declines in both rents and occupancy. SFR advertised asking rents fell $7 in November to $2,150, down 0.3 percent year-over-year, and was $25 below the summer peak. SFR occupancy marked a 40-basis-point year-over-year decline to 95.1 percent in October, stronger in RBN (96.6 percent) than in Lifestyle (94.7 percent). Matrix anticipates a stock expansion of 36,683 deliveries by the end of the year. With just 13,000 construction starts recorded during the first three quarters of 2024, supply will dwindle in the second part of 2025 and beyond.
Read the full Yardi Matrix multifamily real estate report.
