Record New Supply Is Expected to Inhibit Rent Growth in 2024

In many of the markets that saw explosive growth during the pandemic, new supply coming online will depress rent appreciation this year, according to a special report from Yardi Matrix.

While the national average asking rents grew by 1.6% in 2023, some markets could end the year with slight negative growth. Yardi anticipates stronger growth in the working-class renter-by-necessity segment, as most of the new supply comprises upscale lifestyle units.

There is an expectation that absorption of the new supply will continue performing well in the markets that are receiving a large amount although it may take a year or so for the new supply to be fully absorbed.

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