In its latest multifamily report, Yardi Matrix finds that the national average rent has increased for the second month in a row. Up year-over-year at 0.7 percent, the average asking rent in April has reached $1,725—a $6 increase from March 2024.
The national average rent is now just $2 less than the all-time high of $1,727 set last summer, according to the Matrix National Multifamily Report.
“The patterns of rent growth can also be viewed with some optimism,” the report states. “For one thing, demand is not limited by region or market size—it is widespread across the country.”
Multifamily Rent Growth in Top Metros
New York leads the top metros in rent growth at a 4.6% increase year-over-year. Midwest metros have positive absorption as well and are among the top rent growth leaders in the past year.
National Average Multifamily Rents
Second to New York in rent growth is Columbus, Ohio, a metropolitan area that is increasingly growing in popularity, followed by New Jersey; Chicago, Ill.; Kansas City, Mo.; and Washington, D.C.
Just four of the top 30 metros reported negative rent growth in 2024—Austin, Texas (–0.3%); Atlanta, Ga. (–0.2%); Raleigh, N.C. (–0.1%); and Tampa, Fla. (–0.1%).
Multifamily Absorption
More than 72,000 units were absorbed in Q1 2024, according to the report. The figure is below the average for the last six first quarters, but also the highest Q1 number since 2021.
Regionally, the Southwest absorbed the most units: 18,000 units, or 0.6% of stock. The Southeast follows (17,000) slightly below the average at 0.4 percent. The West (14,400) follows at 0.4 percent, while the Midwest (11,750), and Northeast (11,500) regions match the national average of 0.5 percent.
RELATED
- Multifamily rents stable heading into spring 2024
- Multifamily housing starts and permitting activity drop 10% year-over-year
- Multifamily rent growth rate unchanged at 0.3%
The largest metros with the highest absorption as a percentage of stock over the past year are Nashville, Tenn. (4.2%); Charlotte, N.C. (3.9%); Phoenix, Ariz. (3.5%); Miami, Fla.; and Austin, Texas (both 3.3%); and Raleigh, N.C. (3.2%).
National Lease Renewals
The national lease renewal rate averaged 65.8% in March 2024, the lowest average in nearly two years.
However, the renewal for March 2024 was up 80 basis points from February. Columbus, Ohio, had the highest renewal rent growth (10%), followed by Kansas City, Mo. (9.4%), and Miami, Fla. (7.7%). The three metros with negative renewal rent growth are San Francisco, Calif. (-0.6%), Austin, Texas (-1.4%), and Los Angeles, Calif (-15.4%).
According to Yardi Matrix, Los Angeles has struggled with “a weak job market, tepid demand—especially in the downtown—and a shortage of affordable product.”
Click here to read the full Matrix National Multifamily Report for April 2024.
Related Stories
MFPRO+ News | Jul 24, 2024
Most popular cities for renters mid-2024
Rental activity in the U.S. continues to grow halfway through 2024. With the work-from-home boom stabilizing, more renters are eying desirable cities to relocate to.
MFPRO+ News | Jul 22, 2024
Miami luxury condominium tower will have more than 50,000 sf of amenities
Continuum Club & Residences, a new 32-story luxury condominium tower in the coveted North Bay Village of Miami will feature more than 50,000 sf of indoor and outdoor amenities. The program includes a waterfront restaurant, dining terraces with resident privileges, and a private dining room outdoor pavilion.
MFPRO+ News | Jul 22, 2024
6 multifamily WAFX 2024 Prize winners
Over 30 projects tackling global challenges such as climate change, public health, and social inequality have been named winners of the World Architecture Festival’s WAFX Awards.
MFPRO+ News | Jul 15, 2024
More permits for ADUs than single-family homes issued in San Diego
Popularity of granny flats growing in California
Vertical Transportation | Jul 12, 2024
Elevator regulations responsible for some of ballooning multifamily costs
Codes and regulations for elevators in the United States are a key factor in inflating costs of multifamily development, argues a guest columnist in the New York Times.
MFPRO+ New Projects | Jul 10, 2024
3 noteworthy multifamily projects for July 2024
These three multifamily projects on our radar include an artist-inspired complex, seven-acres of senior housing, and a budget-conscious rental community.
MFPRO+ News | Jul 8, 2024
Boston receives 304 new market-rate and affordable housing units
The Smith No. 99 in Boston, Mass., is a new 305,000-sf mixed-use apartment community featuring 304 market rate and affordable housing units.
MFPRO+ New Projects | Jul 2, 2024
Miami residential condo tower provides a deeded office unit for every buyer
A new Miami residential condo office tower sweetens the deal for buyers by providing an individual, deeded and furnished office with each condo unit purchased. One Twenty Brickell Residences, a 34-story, 240-unit tower, also offers more than 60,000 sf of exclusive residential amenities.
Senior Living Design | Jun 28, 2024
The country’s largest retirement community expands with educational facilities
The project will include a high school, a K-8 school, and an Early Learning Center aimed at serving the children of residents who work in qualified businesses within The Villages.
MFPRO+ New Projects | Jun 27, 2024
Chicago’s long-vacant Spire site will be home to a two-tower residential development
In downtown Chicago, the site of the planned Chicago Spire, at the confluence of Lake Michigan and the Chicago River, has sat vacant since construction ceased in the wake of the Great Recession. In the next few years, the site will be home to a new two-tower residential development, 400 Lake Shore.