Yardi Matrix: Rents Fall Again in December 2023

(Image courtesy of Yardi Matrix; Breakout image courtesy of Josh Hild/pexels.com)

Yardi Matrix, Santa Barbara, Calif., released its Yardi Matrix National Multifamily Report, finding that rents declined for a fifth consecutive month.

Average asking rent fell $4 to $1,709 in December from November. Ultimately, 2023 finished out the year at a 0.3% year-over-year growth rate.

Single-family rents have been stronger than multifamily, with single-family rents falling only $1 in December. Year-over-year growth was up 20 basis points to 1.2%.

Rent growth continues to be the highest in the Northeast and Midwest.

Despite tepid numbers, Yardi Matrix predicted demand would stay strong, especially amid the still solid job market and continued household formation. Additionally, factors such as immigration numbers remain strong and are helping to drive further demand.

Apartment absorption totaled 285,000 through November, which is in line with recent years with stronger rent growth.

The national occupancy rate remained flat at 94.8%. However, occupancy rates fell or were unchanged as of November in most markets. The largest decline was in Atlanta, down 1.3% year-over-year.

Markets seeing occupancy rate increases were Chicago (up 0.2%), Seattle (up 0.2%), Denver (up 0.1%), Washington, D.C. (up 0.1%) and Minneapolis/St. Paul (up 0.1%).