Yardi Matrix Finds Solid Multifamily Performance in First Half of 2024

(Image courtesy of Yardi Matrix; Breakout image courtesy of Ricky Esquivel/pexels.com)

Yardi Matrix, Santa Barbara, Calif., reported that multifamily performance was solid in the first half of 2024, with advertised rents up 1.5% nationally.

Rents were up by 1% in Q2.

However, that’s a bit below pre-pandemic numbers, when first-half rent growth averaged 2.5%, and Q2 rent growth averaged 1.7%.

For June, the advertised rent rose $4, but year-over-year growth fell by 20 basis points to 0.6%. The national average advertised rent currently stands at $1,739.

Rent growth during the month was led by New York City (up 4.8% year-over-year); Kansas City, Mo., (up 3.4% year-over-year); Columbus (up 3.2% year-over-year); New Jersey (up 3.1% year-over-year) and Washington, D.C. (up 3% year-over-year).

Some places saw negative growth–including Austin, Texas, (down 6.5%), Atlanta (down 3.6%); and Raleigh, N.C., (down 3.3%).

One slightly mixed spot: advertised rates for single-family rentals fell $3 in June to $2,166. Year-over-year growth dropped by 30 basis points to 1.1%. However, single-family rents still remain near their all-time high and that 1.1% growth is outperforming multifamily generally.

The multifamily market is on track to absorb 300,000 units overall in 2024, below the 600,000 reached in 2021, but still solid.

Yardi Matrix noted that multifamily owners, in the current environment, may be paying more attention to expenses. Expenses per multifamily unit rose by 8% year-over-year in 2023 and 8.2% in 2022. Those jumps are significant from the 3.4% average growth over the previous four years.

Driving up expenses are property insurance, marketing, administrative costs, and repairs and maintenance.