Average multifamily asking rents growth showed a minor increase in October, according to the latest Yardi Matrix Multifamily Report. The average U.S. asking rate was $1,727. Year-over-year rent growth was down to 8.2%, the lowest level since summer 2021 and from its 15.3% peak in the first quarter.
“The inevitable economic slowdown raises questions about when the impact will start to be felt and how much the sector will be affected,” stated the report. “Demand has weakened since the first quarter due to slowing job growth and concerns over the macroeconomic environment. The robust household formation that drove demand in 2021 is no longer in effect.”
The $3, or 0.2%, rent gain came only from the renters-by-necessity sector, which increased by 40 basis points in October. Rent growth month over month was led by New York City, 0.8%; Indianapolis, 0.7%; Kansas City, Missouri, 0.6%; and Portland, Oregon, 0.5%.
“These metros benefit from low levels of new supply that are less than the national average,” the report read. Only four metros in the renters-by-necessity segment saw negative growth.
High-end lifestyle unit gains remained unchanged, but 16 of the top 30 metros saw negative growth. This negative growth was led by Las Vegas, -0.8%; Sacramento, California, -0.6%; and the Inland Empire, California, -0.5%.
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