Rents in most American cities continue to rise slightly each month, but are not duplicating the rapid escalation rates exhibited in 2021. But given ongoing gains, Yardi® Matrix has revised its end-of-year projections upwards for most markets in a new special report.
Average month-over-month asking rents increased by 1.1 percent in May compared to the one percent month-over-month increase in April. However, year-over-year asking rents decelerated, from 16 percent in April to 14 percent in May.
“While we are seeing the usual seasonal increase leading into the summer months, 2022 does not look like a repeat of 2021 even though rent growth remains elevated,” state Matrix analysts.
Asking rents fell in only six markets: the gateway markets of Queens and Brooklyn; small Southern markets Macon, Ga., and Jackson, Miss.; and tropical Honolulu and the Southwest Florida Coast.
Conversely, 84 markets experienced greater than one percent month-over-month increase, and seven markets saw month-over-month growth that topped two percent: Charleston, Knoxville, the Bay Area-South Bay, Miami, the Urban Twin Cities, Wilmington, N.C., and Portland, Maine.
Most markets received an increase to their end-of-year projections in the newly released Matrix report. The biggest increases were concentrated in markets that continue to outperform expectations, with Scranton-Wilkes-Barre, Wilmington, South Bend and Spokane all seeing a more than five percent increase for year-end 2022.
Learn more about the expectations for rents for the remainder of 2022.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
Related Stories
MFPRO+ Research | Sep 11, 2024
Multifamily rents fall for first time in 6 months
Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741.
Contractors | Sep 10, 2024
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of August 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.2 months in August, according to an ABC member survey conducted Aug. 20 to Sept. 5. The reading is down 1.0 months from August 2023.
Giants 400 | Sep 6, 2024
Top 100 Architecture Engineering Firms for 2024
Stantec, HDR, Page, HOK, and Arcadis North America top Building Design+Construction's ranking of the nation's largest architecture engineering (AE) firms for nonresidential building and multifamily housing work, as reported in BD+C's 2024 Giants 400 Report.
Contractors | Aug 21, 2024
The average U.S. contractor has 8.4 months worth of construction work in the pipeline, as of July 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator held steady at 8.4 months in July, according to an ABC member survey conducted July 22 to Aug. 6. The reading is down 0.9 months from July 2023.
MFPRO+ Research | Aug 9, 2024
Apartment completions to surpass 500,000 for first time ever
While the U.S. continues to maintain a steady pace of delivering new apartments, this year will be one for the record books.
Contractors | Aug 1, 2024
Nonresidential construction spending decreased 0.2% in June
National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.
Office Buildings | Jul 22, 2024
U.S. commercial foreclosures increased 48% in June from last year
The commercial building sector continues to be under financial pressure as foreclosures nationwide increased 48% in June compared to June 2023, according to ATTOM, a real estate data analysis firm.
Construction Costs | Jul 18, 2024
Data center construction costs for 2024
Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers.
Healthcare Facilities | Jul 16, 2024
Watch on-demand: Key Trends in the Healthcare Facilities Market for 2024-2025
Join the Building Design+Construction editorial team for this on-demand webinar on key trends, innovations, and opportunities in the $65 billion U.S. healthcare buildings market. A panel of healthcare design and construction experts present their latest projects, trends, innovations, opportunities, and data/research on key healthcare facilities sub-sectors. A 2024-2025 U.S. healthcare facilities market outlook is also presented.
Market Data | Jul 16, 2024
Construction spending expected to rise, despite labor and materials snags
In the first half of 2024, construction costs stabilized. And through the remainder of this year, total cost growth is projected to be modest, and matched by an overall increase in construction spending. That prediction can be found in JLL’s 2024 Midyear Construction Update and Reforecast.
