Rents Rise and Growth Rate Slows in May, According to Yardi Matrix


Rent deceleration is not surprising due to increased supply but raises long-term questions

SANTA BARBARA, Calif., June 3, 2017 – Average U.S. multifamily rents rose $4 in May to $1,316, according to a survey of 121 markets by Yardi® Matrix. While this represented a 1.5% increase on a year-over-year basis and the third consecutive month of rent growth, it was also the 13th straight month that the year-over-year growth rate decreased.

“Driving the rent deceleration is the increase in supply nationally combined with issues that vary by market, such as slowing demand or affordability,” notes the most recent Matrix Monthly. Although the slowing growth rate is not unexpected following several years of outsized increases, it raises questions about how low the rate of growth will go and how long growth will remain stagnant.

The leaders in year-over-year rent growth in May were the California metros of Sacramento, the Inland Empire and Los Angeles, followed by Minnesota’s Twin Cities and Orlando, Fla. Rents fell in several metros including Houston; San Jose, Calif.; San Francisco; Austin, Texas; and Boston.

View the full May report for additional detail from 121 major real estate markets.

Yardi Matrix is a business development and asset management tool for investment professionals, equity investors, lenders, and  property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self-storage property types. Email [email protected], call 480-663-1149 or visit to learn more.

About Yardi

Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information, visit