Yardi Matrix: Multifamily Rents Flat in August

(Image courtesy of Yardi Matri)

Yardi Matrix, Santa Barbara, Calif., released its data on multifamily rents in August, finding that they were essentially flat, with just a $1 drop to $1,741 from July. Year-over-year growth was unchanged at 0.8%.

Yardi Matrix pointed to seasonality and the high number of deliveries in certain areas–such as the Sun Belt region–as muting growth.

However, demand remains strong, and the nation occupancy rate was unchanged at 94.7% for the fourth straight month. Occupancy is down 0.3% year-over-year.

The strongest rent results were seen in major East Coast cities and secondary markets in the Midwest–with New York City, up 4.8% year-over-year, Kansas City, Mo., up 4.1%, Washington, D.C., up 3.4%, Indianapolis, up 3%, and Boston, up 2.9%.

Some cities, though, are seeing rents fall–such as Austin, down 5.5%, Raleigh, N.C., down 3.4%, Phoenix, down 2.9%, Orlando, down 2.7%, and Atlanta, also down 2.7%.

By segment, rents rose by 0.1% month-over-month in the renter-by-necessity segment and fell by 0.2% in the luxury lifestyle segment.

Single-family rental advertised rates fell $7 to $2,164, and the year-over-year growth rate dropped 40 basis points to 0.7%. However, the report noted it’s probably going to be a short blip, as the market remains solid.

Multifamily sales activity is also flat year-over-year and well below busy 2021 and 2022.

Volume year-to-date through July was $33.8 billion. However that’s a major contrast from the $230 billion in sales reached in 2021 and the $200 billion hit in 2022.

Yardi Matrix predicted a potential pick up in transaction activity if rates do indeed fall over coming months.