Multifamily rents fall for first time in 6 months

Multifamily rents fall for first time in 6 months 0 qpurcell Wed, 09/11/2024 - 08:56 MFPRO+ Research Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741. Quinn Purcell, Managing Editor Multifamily rent prices dropped to $1,741 in August 2024, marking the first time in six months that average rent prices have decreased. MFPRO+ News MFPRO+ Research Multifamily Housing Apartments Industry Research Market Data Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741. Year-over-year growth remains largely unchanged at 0.8%.According to the Yardi Matrix Multifamily National Report for August, the market's streak of rent growth was impacted by seasonality and the high number of deliveries to Sun Belt cities. However, demand still remains as the national occupancy rates sits at 94.7%.Yardi Matrix Multifamily National Report for August 2024While the dip in rent prices indicate incremental—not drastic—differences in the market as of August, change is still imminent.“The Consumer Price Index has dropped under 3%, and with the housing component continuing to decelerate, inflation is getting close to the Fed's 2% target rate,” the report states. “Lower rates will be a relief to multifamily, potentially unlocking asset sales and refinancings, while reducing the pressure on properties that are underwater on their mortgages.”National Average RentsClick here to read the full Yardi Matrix National Multifamily Report.

Sep 12, 2024 - 12:50

qpurcell Wed, 09/11/2024 - 08:56

MFPRO+ Research

Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741.

Quinn Purcell, Managing Editor

Exterior of new multifamily building on a blue cloudy sky background

Multifamily rent prices dropped to $1,741 in August 2024, marking the first time in six months that average rent prices have decreased.

Ending its six-month streak of growth, the average advertised multifamily rent fell by $1 in August 2024 to $1,741. Year-over-year growth remains largely unchanged at 0.8%.

According to the Yardi Matrix Multifamily National Report for August, the market's streak of rent growth was impacted by seasonality and the high number of deliveries to Sun Belt cities. However, demand still remains as the national occupancy rates sits at 94.7%.

Yardi Matrix Multifamily National Report for August 2024

While the dip in rent prices indicate incremental—not drastic—differences in the market as of August, change is still imminent.

“The Consumer Price Index has dropped under 3%, and with the housing component continuing to decelerate, inflation is getting close to the Fed's 2% target rate,” the report states. “Lower rates will be a relief to multifamily, potentially unlocking asset sales and refinancings, while reducing the pressure on properties that are underwater on their mortgages.”