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Multifamily rent growth continues to decelerate, according to the latest Yardi Matrix Multifamily Report. The average U.S. asking rate was $1,718 in September, the same as in August. Year-over-year rent growth was down more than a full percentage point for the third month in a row, bringing it under 10% for the first time since July 2021.

“The cooling economy is beginning to show its effects on multifamily,” stated the report. “However, key fundamentals remain strong. Rent decreases continue to be concentrated in high-end lifestyle units, which dropped 0.3% nationally in September. Rents increased 0.2% for renter-by-necessity units and stabilized nationally for all units.”

Yardi Matrix has added two new data points to its monthly reports—lease renewal percentages and renewal rent growth as well as rent-to-income ratios. In August, the lease renewal rate rose 60 basis points to 59.1% after falling for the previous five months. “With the Fed hiking up interest rates, home buying has grown out of reach for many, and renewal rent growth, while high, is typically lower than rent growth for a new lease.”

Nine basis points higher than in July, national rent-to-income ratios for all units were 29% in August, according to Yardi Matrix. The ratios were higher for renter-by-necessity units at 30.6%, which dropped 3 basis points from July; lifestyle units had a rent-to-income ratio of 27.4%, a 14-basis-point increase.

The slowing of rent growth was seen in nearly all metros, with nine of Yardi Matrix’s top 30 metros—all in the Sun Belt—maintaining year-over-year growth over 10% last month. The top performers included Miami with a 14.3% increase, Orlando, Florida, at 13.3%, and Nashville, Tennessee, at 13.2%.

Month over month, many metros saw strong growth, with the highest increases seen in Sacramento, California, Boston, and California’s Orange County, all up 0.7%; Los Angeles, 0.5%; and Nashville, 0.4%). While national asking rents did not change from August to September, rents are still up 6.6% since the start of 2022. According to Yardi Matrix, in a typical year, rents had only risen an average of 2.9% by September.

In addition, the single-family rental (SFR) sector continues to see decelerating rent growth. National asking rents for single-family rentals was up 7.8% year over year last month, a decrease of 170 basis points from August.

The average national asking rent decreased $7 last month to $2,081. According to Yardi Matrix, nine of its top 35 metros experienced year-over-year rent growth of 10% or more in September with the highest increases in Washington, D.C., 39.7%, and Orlando, 35.6%, and Toledo, Ohio, 15.1%.

“The outlook for the SFR sector remains strong despite moderating rents. With 61% of home buyers priced out of the market, according to, many turn to SFR homes to accommodate their needs,” noted the report.