Consistent economic growth and demographic trends sustained multifamily demand at the start of the third quarter, according to the latest Yardi® Matrix National Multifamily Report.
Yardi stated that the average U.S. publicly advertised rent or “asking rent” rose 0.8% year-over-year through July, or $4 to $1,743. The national occupancy rate in June remained at 94.6 percent for the seventh straight month, down 0.4 percent YoY.
Gateway metros in the East and secondary markets in the Midwest continued to lead rent growth YoY, with the strongest performance registered in New York City (5.2%), Washington, D.C. (4%) and Kansas City (3.4%), as Yardi reported. Rent growth remained negative in several Sun Belt metros, led by Austin (-5.7%), Atlanta (-3.3%) and Raleigh (-2.8%).
Yardi also reported that the single-family rental market continued to exhibit strength, with advertised asking rents up $5 in July to $2,171, up one percent YoY. Demand is sustained by the high cost of homeownership and the lack of available homes for sale.
“Policymakers are releasing plans to address the cost of housing, which has increased in recent years,” said the report. “President Joe Biden recently proposed a plan that would add to housing supply but also included a counterproductive national rent control. History has shown building more supply is the most effective way to address housing costs.”
Gain more insight in the new Yardi Matrix National Multifamily Report.
