Rents Rise in May

Multifamily asking rents rose for the third straight month in May, according to the latest National Multifamily Report from Yardi Matrix.S.6 percent. That was the lowest level since March 2021.

Multifamily asking rents rose for the third straight month in May, according to the latest National Multifamily Report from Yardi Matrix.

Despite the threat of a slowing economy looming, average U.S. asking rent rose $7 in May to $1,716, while year-over-year growth decelerated to 2.6 percent. That was the lowest level since March 2021.

For the year to date, rents are up $18, or one percent since January 1. The seasonal outline of growth is not far off a typical pre-pandemic year, although the rate of increase is lower.

“While performance displays resilience, the data is not unambiguously positive as it has been for most of the last two years,” states the report. “Rent growth has turned negative year-over-year in several metros as occupancy rates weaken amid slackening demand and rapid growth in new deliveries.”

Overall market attitudes remain positive. Renting is still cheaper than owning, and first-time buyers are renting longer. The stickiness of high-income renters likely contributes to the recent resurgence in high-end Lifestyle properties, in which rents rose 0.4 percent in May.

The average single-family unit rent reached $2,100 for the first time in May, about a year after topping the $2,000 mark. Year-over-year growth fell 40 basis points to 2.1 percent. SFRs are boosted by waning home sales attributed to high interest rates and limited inventory.

Gain more insights by downloading May’s Multifamily Report.

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AUTHOR

Leah Etling is the founding editor of the Balance Sheet and a 12-year Yardi employee who also oversees press releases and social media. An award winning journalist, she holds a master's degree from UC Berkeley and is a native of Santa Barbara County, Yardi's home.

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