Multifamily Rents See Solid Bump in March
Signaling a return to a normal seasonal growth pattern, national asking rents posted their largest gain in 20 months. According to the latest Yardi Matrix National Multifamily Report, the average U.S. asking rent increased $8 to $1,721 in March. In addition, the year-over-year growth rate increased to 0.9%.
Yardi Matrix explained that the 0.5% growth for the month and the first quarter is in line with the 0.6% average for March and the first quarter in the five years preceding the pandemic.
Out of the Yardi Matrix top 30 metros, 13 have experienced negative rent growth over the past year; however, that situation is beginning to reverse. Only four recorded negative rent growth in the first quarter, and only two were negative in March.
“March’s multifamily data should provide some level of comfort for the many market observers worried about the sector’s performance this year owing to slowing economic growth or the robust supply pipeline,” noted the report. “While one month of data doesn’t constitute a trend and rent growth likely will remain constrained due to affordability and new supply, the tone early in 2024 is encouraging.”