Multifamily performance was solid in July, as rents nationally rose $2 to $1,729, or 1.6% year-over-year (YoY), according to the latest Yardi® Matrix National Multifamily Report.
The report shows demand is buoyed by the healthy job market, as the U.S. economy added 1.7 million jobs in the first half of 2023.
The numbers:
- Rent growth continues to be led by metros in the Northeast and Midwest: Indianapolis (5.5% YoY), New York (5.5%), New Jersey (5.4%), Chicago (5.2%) and Boston (4.3%).
- A key factor in rent growth in these metros is the low number of new units and high occupancy rates. The occupancy rate in New York City is 98.1% and New Jersey recorded 97.2%.
- Through the end of May, apartment absorption totaled 120,000 units nationally, down from peak post-pandemic conditions but in line with seasonal norms.
- Single-family rents (SFR) were unchanged in July at $2,108, although they remained at an all-time high, thanks to healthy occupancy rates.
- Year-over-year, national SFR rent growth fell 20 basis points to 1.2%.
Yardi’s take:
“While we still expect the economy to cool in coming quarters, the fact that second quarter job and GDP numbers were strong while inflation recedes has confounded the economic consensus. As long as that continues, consumer balance sheets will stay strong and apartment demand is likely to be firm,” say Matrix analysts.
To see the full report, visit Yardi Matrix National Multifamily Report.
