Multifamily Performance Remains Stable in August

Industry News,

Rents and occupancy were relatively flat in August, according to the National Multifamily Report from Yardi Matrix. The average U.S. asking rent increased $1, or 0.1%, to $1,728, while year-over-year growth dropped to 1.5%, down 20 basis points from July.

“Economic growth continues to be stronger than expected, providing a backdrop to consistent multifamily demand. U.S. asking rates rose slightly in August, while occupancy remained strong at 95%,” stated the report.

For the short term, supply growth is a driving factor in metro-level rent growth. Most metros that are seeing the highest year-over-year growth are benefiting from a weak supply pipeline—New York, Chicago, Indianapolis, and San Diego.

Asking rent growth in August was concentrated in the renter-by-necessity segment, which increased 0.1% month over month, while lifestyle rents declined 0.1%. Out of the top 30 Matrix metros, rents increased in 16 metros for the renter-by-necessity segment but only in 13 for the lifestyle segment.

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