Multifamily Rent Up for Third Consecutive Month, Yardi Matrix Finds

(Courtesy Yardi Matrix)

Yardi Matrix, Santa Barbara, Calif., found multifamily asking rents rose for the third straight month in May, with average rent up $7 to $1,716.

However, year-over-year growth decelerated to 2.6%, the lowest level since March 2021.

The Yardi Matrix National Multifamily Report found year-to-date, average rent is up $18, or 1%. The seasonal outline of growth is not far from pre-pandemic, although the rate of increase is lower, Yardi Matrix said.

The average single-family unit rent reached $2,100 for the first time in May, a little more than a year after passing the $2,000 mark.

“While performance displays resilience, the data is not unambiguously positive as it has been for most of the last two years,” the report said. “Rent growth has turned negative year-over-year in several metros as occupancy rates weaken amid slackening demand and rapid growth in new deliveries.”

Rent growth was negative year-over-year in eight metro areas: Orange County, Calif., (-0.2%), Atlanta (-0.4%), Sacramento, Calif., (-0.4%), San Francisco (-0.4%), Seattle (-0.9%), Austin (-1%), Phoenix (-2.6%) and Las Vegas (-2.8%).

Growth was led by metro areas in the Midwest and Northeast, with Indianapolis (up 7% year-over-year), Kansas City, Mo., (6%), New York (6%), Boston (4.8%) and Chicago (4.6%).

“Still, the market tone remains positive,” Yardi Matrix said. “Renting is still cheaper than homeownership, and first-time buyers are renting longer, as for-sale inventory is low.”