Demand remains strong despite ongoing delivery of new supply in many markets
SANTA BARBARA, Calif., Nov. 13, 2024 – The U.S. multifamily market showed signs of slowing in October, with advertised asking rents declining slightly by $3 to an average of $1,748, according to the latest Yardi® Matrix Multifamily Report.
Year-over-year growth in rents remained modest at 0.9 percent, consistent with the range of 0.7 to 0.9 percent seen since the beginning of the year.
Despite the small dip, demand for multifamily housing remains strong, with 329,000 apartment units absorbed through September 2024, putting the market on track for one of its stronger years in recent memory.
However, an increase in new deliveries has outpaced absorption, resulting in a slight drop in the national occupancy rate for stabilized properties to 94.7 percent, down 10 basis points from previous months.
The performance of the multifamily sector continues to vary by region. In markets such as the Northeast, Mid-Atlantic, and Midwest, rent growth remains strong, with the top 11 metros for rent increases concentrated in these areas. High supply levels in the Southeast and Southwest, which have seen significant new deliveries, have led to softer rent growth in these regions.
The single-family rental market also faced challenges in October, with advertised asking rents dropping $8 to $2,164, resulting in a year-over-year growth rate of just 0.3 percent. As with multifamily, markets with high supply levels are experiencing a slowdown.
Gain more multifamily insights from the Yardi Matrix October report.
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