In the first quarter of 2024, 72,800 units were absorbed nationally
(SANTA BARBARA, Calif., May 6, 2024) – The U.S. multifamily market recorded another asking rent gain to start the second quarter, according to the latest Yardi® Matrix National Multifamily Report.
The average U.S. asking rent gained $6 to $1,725 in April, up 0.7 percent year-over-year. Meanwhile, occupancy remained at 94.5 percent in March, a rate it held since the beginning of the year.
Rent growth continued to be highest in markets in the Northeast and Midwest, led by New York City (4.6 percent year-over-year). Among Matrix’s top 30 markets, negative rent movement greater than 3.0 percent year-over-year was recorded only in Austin (-6.5 percent) and Atlanta (-3.4 percent).
Rents rose 0.3 percent month-over-month across asset classes. Monthly rent gains were led by Boston (1.1 percent), Detroit (0.9 percent) and Philadelphia (0.8 percent). The largest declines were registered in Tampa, Raleigh and Austin (each down 0.3 percent).
In the first quarter, 72,800 units were absorbed nationally, the equivalent of 0.5 percent of apartment stock. It marks the highest Q1 volume since 2021, with demand highest in the Southwest (18,000 units) and secondary markets (47,100 units).
“Demand for apartments continues unabated due to high levels of household formation stemming from the strong job market, large numbers of immigrants and ongoing migration to the South and West,” states the report.
Renewal rent growth rose 4.4 percent in March, up 80 basis points from February. Meanwhile, the national lease renewal rate averaged 65.8 percent in March.
The single-family rental market maintained solid performance, with rents up $9 in April to an all-time high of $2,154, the equivalent of a 1.3 percent year-over-year increase. SFR occupancy remained flat at 95.4 percent in March. Financing in the sector is picking up, with $1.9 billion of loans securitized by operators in Q1 2024.
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, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.