However, national average apartment rent increased last month to $1,726
SANTA BARBARA, Calif., July 19, 2023 – Multifamily asking rents grew another $7 last month, on average, but year-over-year growth fell to 1.8 percent, according to the latest Yardi Matrix National Multifamily Report. That’s down 70 basis points from May.
Rents are buoyed by ongoing strong demand for units. Though down from the 2021 highs, occupancy rates are steady at 95 percent. The average asking rent was $1,726 in June.
“Rents are growing within a normal seasonal pattern, albeit well below the post-pandemic boom and even below pre-pandemic trends,” say analysts. Rents were up $20, or 1.2 percent, in the second quarter, and are up $23, or 1.4 percent, during the first half of 2023.
Single-family rental rates increased $5 in June to $2,103, while year-over-year growth fell 80 basis points to 1.3 percent.
“Demand has remained strong, driven by the job market, which added 1.5 million jobs during the first half of 2023, and weak home sales, which are presenting a challenge to first-time home buyers,” states the report.
A growing number of metros are now posting negative growth year-over-year, states the report. Nine of the 30 metros tracked by Matrix were negative in June, mostly in the Sun Belt and West, where demand has reverted to normal as new supply comes online. This month’s report includes an updated list of metros that will be of interest to multifamily investors, owners and managers.
Gain more insight in the new Yardi Matrix National Multifamily Report.
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