Read the latest Yardi Matrix National Multifamily Market Report.
Advertised asking rents fell $1 to $1,741 in August, flat year-over-year at 0.8%
Report highlights:
- Following six months of gains, the average U.S. advertised asking rents fell $1 to $1,741 in August, flat at 0.8% year-over-year.
- Dip in Lifestyle rents outpowers Renter-by-Necessity gains.
- Seasonal patterns, high supply and slowing economy are main factors in rent movement.
- Advertised asking rents in the SFR segment fell $7 in August to $2,164.
Stillness over the market ahead of pending changes
The average national advertised asking rent fell by $1 to $1,741 in August, following six months of steady growth. On a year-over-year basis, rent growth remained unchanged at 0.8%, and demand was still strong, keeping occupancy at 94.7% in July, in the middle of a supply wave. Leaders in rent growth remained gateway cities in the East and secondary markets in the Midwest, fronted by New York City (4.8%), Kansas City (4.1%), Washington, D.C. (3.4%), Indianapolis (3.0%) and Boston (2.9%). Drops in rents were recorded in Austin (-5.5%), Raleigh (-3.4%), Phoenix (-2.9%) Orlando and Atlanta (both -2.7%).
The national occupancy rate in July marked the fourth consecutive month at 94.7%, a 30-basis-point decrease year-over-year. Of Yardi Matrix’s top 30 metros, seven posted increases in occupancy and 13 had the rate above 95.0%. Occupancy increased the most in Las Vegas (0.9%) and posted the largest drops in Houston (-0.7%), Dallas, Kansas City, Austin and San Diego (all down 0.6%).
End of rent gains run
The 10 basis points rent increase recorded month-over-month in the Renter-by-Necessity segment in August was muted by Lifestyle’s 20-basis-point decline. Overall, following a six-month streak of gains, the U.S. advertised asking rents decreased 10 basis points, with Las Vegas recording the largest drop, down 1.6%. While Lifestyle growth was highest in Detroit (1.1%), Kansas City led in RBN growth, up 1.1%.
Multifamily sales remained tepid, flat year-over-year, the volume year-to-date through July totaling $33.8 billion, a tiny fraction of the $230 billion in sales in 2021 and $200 billion in 2022. The prospect of interest rate cuts sparks optimism that activity will rebound.
The single-family rental segment continued to show healthy demand, even though advertised asking rents fell $7 in August to $2,164, with year-over-year growth down another 40 basis points to 0.7%. The decline occurred only in the Lifestyle segment, with the average rent down $9 month-over-month to $2,244. Overall, SFR rents gained $14 year-to-date and $513, or 31.0% since March 2020. The sector’s occupancy declined just 10 basis points in July to 95.3%, led by a slight blip in RBN, still tight at 96.6%.
Read the full Yardi Matrix Multifamily National Market Report: August 2024.
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