Multifamily performance continues to outpace every year other than 2021, according to the latest Yardi® Matrix Multifamily Report.
Average U.S. asking rent rose $19 in May to an all-time high of $1,680. Year-over-year growth decelerated by 40 basis points to 13.9 percent. That’s 130 basis points off the peak in summer 2021, but still exceptional performance, according to Matrix analysts.
“Decelerating economic growth and concerns about gas prices and inflation have not eroded multifamily demand much nor slowed down the upward climb of rents,” say Matrix analysts.
Rent growth in recent months is consistently a bit less than it was in 2021, but considerably above any previous year and spread across the country. Rent growth rose at least 10 percent year-over-year in 26 of Yardi’s top 30 metros.
The biggest gains were recorded in rapidly growing Sun Belt metros. Miami, Orlando and Tampa are all above 20 percent growth year-over-year. The Twin Cities, at 5.2 percent year-over-year, was the only metro in the Matrix top 30 with rent growth below 8.7 percent.
Meanwhile, the average single-family home asking rent also increased by $19 in May to $2,038, as year-over-year growth dropped by 70 basis points to 12.7 percent. The single-family rental sector is expected to continue to ride strong demand, especially as home sales slow due to higher interest rates.
