Multifamily Rents End Year With Another Decline

According to the latest Yardi® Matrix National Multifamily Report, 2023 ended without another upswing in the multifamily rental market; in fact, December was the fifth month of declines in a row.

The average U.S. asking rent was $1,709 in December (a $4 decline), with year-over-year growth at 0.3%. Occupancy remained unchanged at 94.8% in November. Multifamily rents fell in both the Lifestyle (-0.2%) and Renter-by-Necessity (-0.1%) segments.

Of the top 30 metro areas surveyed by Yardi Matrix, only six experienced growth in multifamily rent prices: Columbus, New York City, Atlanta, Minneapolis + St. Paul, Detroit, and San Francisco.

The report concludes that “Discounting the 2020 pandemic year’s 0.1% gain, 2023’s full-year rent growth of 0.3% was the weakest rent performance since the 0.2 percent increase in 2010. And rents are likely to remain stuck in neutral during the early part of the year.”

However, there are some encouraging signs for those invested in the rental market. Sngle-family rents actually increased in December 2023 (up to $2,123). The report suggests demand has and will be sustained by the job market and immigration.

For the full report, click here.