National Multifamily Report – October 2024
The latest update on rents and other key trends from Yardi Matrix.
National multifamily advertised asking rents fell $3 in October to $1,748, but the 329,000 units absorbed through September signal strong demand, according to the latest Yardi Matrix survey of 140 markets. Since January, year-over-year rent growth remained in the 0.7 percent to 0.9 percent band, up 0.9 in October. Meanwhile, occupancy slid 10 basis points to 94.7 percent. The SFR rate fell $8 in October to $2,164, for a year-over-year growth rate of 0.3 percent, likely impacted by performance in high-supply markets. Occupancy in the sector slid 10 basis points to 95.1 percent in September.
Of Yardi Matrix’s top 30 metros, the top 11 markets for year-over-year rent growth were in the Northeast, Mid-Atlantic and Midwest, while the bottom nine were all metros with high delivery volumes in the Southeast and Southwest. Gateway markets in the East and secondary markets in the Midwest continued to lead in rent growth. Top ranking metros were New York City (5.3 percent), Detroit and Kansas City (both 3.7 percent), Washington, D.C., (3.2 percent) and Columbus (3.1 percent). Meanwhile, rent growth remained negative in high-supply Sun Belt markets, led by Austin (-5.5 percent), Raleigh (-3.1 percent), Phoenix (-2.4 percent), Atlanta (-2.3 percent) and Orlando (-2.2 percent).
On a month-over-month basis, U.S. advertised asking rents fell 0.2 percent in October, declining in 26 of the top 30 metros. The Lifestyle segment posted a 0.3 percent decline, while Renter-by-Necessity rents remained flat. Negative or flat performance was reported in 29 metros in Lifestyle and only 19 in RBN. Detroit bucked the trend, up 0.3 percent in Lifestyle and RBN. Examples of metros with significant monthly declines include Denver (down 1.0 percent in Lifestyle and 0.9 percent in RBN) and Austin (down 0.9 percent in both).
Supply commands market performance, occupancy stabilizes
In October, occupancy showed signs of stabilization, with most markets posting minor changes, except Las Vegas, where the rate rose 100 basis points year-over-year, to 93.7 percent. Supply remained the main factor determining the performance of the multifamily market. Short-term, robust supply in some markets keeps rent growth flat or negative; medium-term, the slowdown in construction starts through 2024 will result in a decline in deliveries in 2026 and 2027 and likely boost rent growth, while long-term, the ongoing housing shortage will possibly worsen the country’s affordability problem unless new construction picks up.
SFR advertised asking rents posted the weakest performance in years in October, down by $8 to $2,164. Year-over-year rent growth dropped 30 basis points to 0.3 percent, while occupancy rates fell 10 basis points in September to 95.1 percent. Yet, the U.S. Census Bureau reported that more than 2.5 million households moved into SFRs over the past year, indicating strong demand. More so given the variety of reasons cited by those surveyed—which included the desire for a new or improved home (15.3 percent), a new job or transfer (10.9 percent), cheaper housing (9.4 percent) and establishing a new household (8.7 percent)—indicate that demand is broad-based and solid.
Read the full Yardi Matrix multifamily real estate report.
