Multifamily Performance Solid in March, Yardi Matrix Finds

(Image courtesy of Yardi Matrix; Breakout image courtesy of Brett Sayles/pexels.com)

Yardi Matrix, Santa Barbara, Calif., found the average U.S. advertised multifamily asking rent grew $5 nationally in March to $1,755.

However, year-over-year advertised rent growth fell 20 basis points to 1%.

Through the quarter, advertised rents were up 0.4%; while that’s muted compared with typical first-quarter growth by a bit, the difference can be attributed to ongoing weakness in high-supply markets where rents remain down year-over-year.

For example, rents have dropped year-over-year in areas that maintain high levels of absorption such as Austin, Texas, Denver, Phoenix, Ariz., and Nashville, Tenn.

In March, gateway and secondary metros in the Northeast and Midwest saw the highest rent growth, with New York City up 5.5% year-over-year, Chicago and Kansas City both up 3.7%, Columbus up 3.5% and Philadelphia up 3.2%.

The national occupancy rate in February was 94.5% and has remained flat for three months.

Nationally, advertised rents for single-family rentals rose in March to $2,169. Year-over-year the growth was flat.

Single-family rental occupancy rates were stable in February at 94.7% and were flat year-over-year.

After a peak in SFR rent growth in 2022, it has gradually decelerated. Yardi Matrix anticipates demand for SFR is unlikely to waver, as many renters in those units prefer to stay in place amid high homeownership costs.

And, while economic uncertainty abounds, investors remain confident and multifamily capital markets are liquid, Yardi Matrix noted.