Single family rents, powered by strong occupancy, match all-time high of $2,108
SANTA BARBARA, Calif., Aug. 9, 2023 – Multifamily performance was solid in July, as rents nationally rose $2 to $1,729, or 1.6 percent year-over-year (YoY).
According to the latest Yardi® Matrix National Multifamily Report, demand is buoyed by the healthy job market, as the U.S. economy added 1.7 million jobs in the first half of 2023.
“While we still expect the economy to cool in coming quarters, the fact that second quarter job and GDP numbers were strong while inflation recedes has confounded the economic consensus. As long as that continues, consumer balance sheets will stay strong and apartment demand is likely to be firm,” say Matrix analysts.
Rent growth continues to be led by metros in the Northeast and Midwest: Indianapolis (5.5 percent YoY), New York (5.5 percent), New Jersey (5.4 percent), Chicago (5.2 percent) and Boston (4.3 percent). A key factor in rent growth in these metros is the low number of new units and high occupancy rates. The occupancy rate in New York City is 98.1 percent and New Jersey recorded 97.2 percent.
Through the end of May, apartment absorption totaled 120,000 units nationally, down from peak post-pandemic conditions but in line with seasonal norms.
Single-family rents (SFR) were unchanged in July at $2,108, although they remained at an all-time high, thanks to healthy occupancy rates. Year-over-year, national SFR rent growth fell 20 basis points to 1.2 percent.
Gain more insight in the new Yardi Matrix National Multifamily Report.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.