Multifamily asking rents dipped slightly for the second month, with the average U.S. asking rent decreasing $3 to an average of $1,748 in October. Year-over-year growth was unchanged at 0.9%, consistent with the 0.7% to 0.9% range since the start of 2024, according to the latest Yardi Matrix National Multifamily Report. The national occupancy rate was 94.7%, down 10 basis points from prior months.
According to Yardi Matrix, despite the dip, demand remains strong. Over 329,000 units have been absorbed through September. However, the sector’s performance varies by region.
“The regional dividing line caused by supply growth continues,” noted the report. “In the Matrix top 30 markets, the top 11 metros for rent growth are in the Northeast, Mid-Atlantic, and Midwest, while the bottom nine are all in the Southeast or Southwest, where deliveries are high.”
Year-over-year rent growth continued to be highest in East Coast gateway metros and Midwest secondary markets. New York City continued to lead the way at 5.3% growth year over year, followed by Detroit and Kansas City, Missouri, at 3.7%; Washington, D.C., at 3.2%; and Columbus, Ohio, at 3.1%.
Sun Belt metros continued to be at the bottom of the rankings for year-over-year rent growth. Austin, Texas, saw -5.5% year-over-year rent growth for October, followed by Raleigh, North Carolina, at -3.1%; Phoenix at -2.4%; Atlanta at -2.3%; and Orlando, Florida, at -2.2%.
Month over month, 26 of the top 30 metros posted rent drops. The national asking rent decrease was due to the lifestyle segment, which saw advertised rents dropping 0.3% in October. Rents for the renter-by-necessity segment were unchanged. Both segments saw significant declines in high-supply markets, including Denver and Austin.
On the single-family rental (SFR) side, asking rents also saw declines, falling $8 in October to $2,164, with year-over-year growth dropping 30 basis points to 0.3%. Kansas City, Detroit, and Raleigh topped the list for the highest year-over-year rent growth, while Miami, San Antonio, and Phoenix were at the bottom of the list.
“SFR demand has been strong, and we expect it to remain that way. The U.S. Census Bureau recently reported that more than 2.5 million households moved into SFRs over the past year,” noted the report. “The reasons cited by those surveyed were varied, led by a desire for a new or improved home (15.3%). Other reasons include a new job or transfer (10.9%), cheaper housing (9.4%), and establishing a new household (8.7%).”
