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Rents rise in multifamily housing for May 2024

MFPRO+ News

Rents rise in multifamily housing for May 2024

Despite May's multifamily performance being a “mixed bag,” rents rose $6 nationally while year-over-year growth remained at 0.6%, according to a Yardi Matrix report.


By Quinn Purcell, Managing Editor | June 11, 2024
Skyline Photo of Empire State Building in New York City
Photo by Roberto Vivancos from Pexels

Multifamily rents rose for the fourth month in a row, according to the May 2024 National Multifamily Report. Up 0.6% year-over-year (YOY), the average U.S. asking rent increased by $6 in May, up to $1,733.

The performance of the multifamily market continues to ebb and flow after five months into 2024. Steady growth is present, however mitigated by the rapid delivery pipeline in many markets, states the report.

National Average Rents

National Average Multifamily Rents from Yardi Matrix May report

According to Yardi, demand remains especially positive in the Sun Belt markets. The Northeast and Midwest continue to report the highest rent growth, led by New York City, N.Y. (4.8% YOY), Columbus, Ohio (3.6% YOY), and Kansas City, Mo. (3.6% YOY).

Multifamily Rent Growth (YOY) in May 2024

Occupancy rates in the U.S. remained unchanged at 94.5% for the third straight month. Multifamily rent growth impacted The Northeast and Midwest the greatest, while hitting Atlanta, Ga., and Austin, Texas, hard with –3.2% and –5.8% growth, respectively.

Top 10 Metros (Year-Over-Year Rent Growth – May)
 

  1. New York City, N.Y.: 4.8% rent growth year-over-year
  2. Columbus, Ohio: 3.6% rent growth year-over-year
  3. Kansas City, Mo.: 3.4% rent growth year-over-year
  4. New Jersey: 3.4% rent growth year-over-year
  5. Washington, D.C.: 3% rent growth year-over-year
  6. Chicago, Ill.: 2.8% rent growth year-over-year
  7. Boston, Mass.: 2.6% rent growth year-over-year
  8. Detroit, Mich.: 2.4% rent growth year-over-year
  9. Philadelphia, Pa.: 2.4% rent growth year-over-year
  10. Indianapolis, Ind.: 1.9% rent growth year-over-year

Additionally, other Midwest markets saw great YOY rent growth as well. Louisville, Ky., had an overall growth of 4.8%, tying New York; Cincinnati, Ohio, saw a 3.5% growth; and Milwaukee, Wis., had a 3.4% increase year-over-year.
 

Multifamily rent growth by metropolitan area


Top Metros (Month-Over-Month Rent Growth – May)

Short-term rent changes saw some Sun Belt markets rebound in May 2024. Average rents rose 0.3% month-over-month and provided modest gains to 26 metros.

Markets like Denver, Colo., and New York City, N.Y., had a monthly rent gain of nearly one percent. This is followed by Raleigh, N.C. (0.8%), Boston, Mass., and Detroit, Mich. (both 0.7%).


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“With high interest rates continuing to put a lid on transactions, investors in search of deals may have to consider such creative alternatives as distressed properties, underserved markets and niche property segments,” the report states.

Click here to read the full Yardi Matrix report.

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