Down 70 basis points from May, year-over-year growth for multifamily asking rents fell to 1.8% in June, while the average asking rent increased $7 from the month prior to $1,727, according to the Yardi Matrix National Multifamily Report.
“Rents are growing within a normal seasonal pattern, albeit well below the post-pandemic boom and even below pre-pandemic trends,” Yardi Matrix analysts say. Rents were up $20, or 1.2%, in the second quarter and are up $23, or 1.4%, for the first half of the year.
Strong demand for units has kept rents afloat with occupancy rates remaining steady at 95%, Yardi Matrix reports. “Demand has remained strong, driven by the job market, which added 1.5 million jobs during the first half of 2023, and weak home sales, which are presenting a challenge to first-time home buyers,” states the report.
Of the top 30 metros, nine posted negative growth in June and were mostly located in the West and Sun Belt, where demand has reverted to normal as new supply delivers. The Northeast and Midwest led year-over-year growth, with New Jersey posting 6.5%; New York, 6.3%; Indianapolis, 6.1%; Chicago, 4.9%; and Boston, 4.7%.
Yardi Matrix notes that the top 30 metros have been updated to include Columbus, Ohio; Detroit; New Jersey (Central and Northern); Richmond,Virginia; and San Diego, and omit California’s Inland Empire, Orange County, Sacramento, and San Jose as well as Kansas City, Missouri.
In June, single-family rental rates increased $5 to $2,103, while year-over growth fell 80 basis points to 1.3%. Demand keeps occupancy rates steady as home sales sputter, the report notes.
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