Anticipated deceleration in rent growth appears to be taking hold, despite $4 asking rent increase
SANTA BARBARA, Calif., Dec. 15, 2021 – Multifamily rents rose less in November as the anticipated deceleration in rent growth begins. Yardi® Matrix reports today that the average U.S. asking rent increased by $4 in November, to a record-high $1,590.
“Coming out of the worst of the pandemic, the multifamily market experienced eight straight months of exceptionally high rent growth, with the average U.S. multifamily asking rent rising about $180 between March and October. A slowdown is inevitable, and it started in November,” say Matrix analysts.
Nationally, asking rents were up 13.5 percent year-over-year in November, a slight increase over October. The single-family rental market also remains robust, with rent growth up 14.7 percent year-over-year in November.
Multifamily demand remains exceptionally strong. The average U.S. occupancy rate of stabilized properties was over 96 percent in October, up 1.4 percent year-over-year. Nearly 590,000 units were absorbed over the 12 months through October, and economic conditions are poised for steady demand.
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