Year-Over-Year Rent Growth Begins to Slow, Yardi Matrix Reports

Asking rents were up $14 in March, but annual growth is now decelerating

SANTA BARBARA, Calif., April 7, 2022 – Prolonged inflation and the war in Ukraine are beginning to impact U.S. economic growth and rent performance as well, according to the latest Yardi® Matrix Multifamily National Report.

Average U.S. asking rents rose $14 in March to an all-time high of $1,642. However, year-over-year growth dropped 50 basis points to 14.8 percent – an indication that rents are beginning to slow after 2021’s record-shattering performance.

“Rent growth is unlikely to keep pace with 2021, as last year’s explosive movement started in the second quarter,” state Matrix analysts.

Rents for single-family rentals continue to rise month-over-month, but growth is also decelerating in that subsector. The average U.S. single-family rent rose $14 to $1,999 in March, while year-over-year growth dropped 90 basis points to 14.1 percent.

Rent growth continues to be led by population shifts to the Southeast and Southwest. Miami, Orlando, Tampa, Las Vegas and Phoenix all recorded asking rent increases of 23 percent or more in March.

“The big picture that emerges from March multifamily data is that the market remains healthy, though signs point to the inevitable deceleration in some markets,” states the report. “Meanwhile, economic conditions and global events contain headwinds that justify the expectations of moderation and caution.”

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