Multifamily Performance Remains Stable in August
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.