The average multifamily rent fell by $3 in September to $1,750, while year-over-year growth was unchanged at 0.9 percent. The Yardi Matrix Multifamily National Report finds that advertised rents fell slightly in September due to seasonality and supply growth in the Sun Belt.
Recent economic news like interest rate cuts and robust GDP and job growth have given the multifamily market a “shot in the arm,” the report states. “Supply growth remains the bright line determining advertised rent growth.”
This is the third consecutive month that multifamily rent has dropped. Among major cities, New York, N.Y., saw the biggest rent increase (5.4% year-over-year), followed by Kansas City, Mo., (4.2% YoY). Secondary markets like Indianapolis, Ind., and Boston, Mass., also saw strong growth. In contrast, many Sun Belt cities experienced falling rents, with Austin, Texas, leading the decline at –4.9 percent.
National Average Rents
Nationwide, multifamily rents decreased by $3 month-over-month in September. This decline was entirely due to the Lifestyle segment, which saw rents fall by $6 to $2,065. The Renter-by-Necessity segment was unchanged overall, recording strong growth in high-cost, low-supply markets.
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