Multifamily rents rose for the fourth month in a row, according to the May 2024 National Multifamily Report. Up 0.6% year-over-year (YOY), the average U.S. asking rent increased by $6 in May, up to $1,733.
The performance of the multifamily market continues to ebb and flow after five months into 2024. Steady growth is present, however mitigated by the rapid delivery pipeline in many markets, states the report.
National Average Rents
According to Yardi, demand remains especially positive in the Sun Belt markets. The Northeast and Midwest continue to report the highest rent growth, led by New York City, N.Y. (4.8% YOY), Columbus, Ohio (3.6% YOY), and Kansas City, Mo. (3.6% YOY).
Multifamily Rent Growth (YOY) in May 2024
Occupancy rates in the U.S. remained unchanged at 94.5% for the third straight month. Multifamily rent growth impacted The Northeast and Midwest the greatest, while hitting Atlanta, Ga., and Austin, Texas, hard with –3.2% and –5.8% growth, respectively.
Top 10 Metros (Year-Over-Year Rent Growth – May)
- New York City, N.Y.: 4.8% rent growth year-over-year
- Columbus, Ohio: 3.6% rent growth year-over-year
- Kansas City, Mo.: 3.4% rent growth year-over-year
- New Jersey: 3.4% rent growth year-over-year
- Washington, D.C.: 3% rent growth year-over-year
- Chicago, Ill.: 2.8% rent growth year-over-year
- Boston, Mass.: 2.6% rent growth year-over-year
- Detroit, Mich.: 2.4% rent growth year-over-year
- Philadelphia, Pa.: 2.4% rent growth year-over-year
- Indianapolis, Ind.: 1.9% rent growth year-over-year
Additionally, other Midwest markets saw great YOY rent growth as well. Louisville, Ky., had an overall growth of 4.8%, tying New York; Cincinnati, Ohio, saw a 3.5% growth; and Milwaukee, Wis., had a 3.4% increase year-over-year.
Top Metros (Month-Over-Month Rent Growth – May)
Short-term rent changes saw some Sun Belt markets rebound in May 2024. Average rents rose 0.3% month-over-month and provided modest gains to 26 metros.
Markets like Denver, Colo., and New York City, N.Y., had a monthly rent gain of nearly one percent. This is followed by Raleigh, N.C. (0.8%), Boston, Mass., and Detroit, Mich. (both 0.7%).
RELATED
- March reports record gains in multifamily rent growth in 20 months
- Multifamily rent growth rate unchanged at 0.3%
- Multifamily rents stable heading into spring 2024
“With high interest rates continuing to put a lid on transactions, investors in search of deals may have to consider such creative alternatives as distressed properties, underserved markets and niche property segments,” the report states.
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