There was little change in rents as moving season is past and tenants settle in for the winter, Yardi Matrix says in the November Multifamily Report.
Of the last 10 Novembers, since 2015, the average U.S. advertised rent has changed more than $3 only three times.
Highlights from the report:
- Multifamily advertised rents dropped $5 nationally in November to $1,744, as a rapid influx of supply continues to counteract strong demand in high-growth Sun Belt markets. Year-over-year rent growth fell 10 basis points to 0.9%.
- Nationally, rent growth has been steady at just under 1.0% throughout the year, but performance is mixed by region. Sixteen of the Matrix top 30 metros have recorded positive advertised rent growth year-over-year, while 14 are negative.
- Due to a seasonal slowdown and rising competition from deliveries, particularly in Florida and Texas, single-family rental rates are slumping. SFR advertised rents dropped $7 month-over-month in November to $2,150, and are down $25 since peaking during the summer.
The report says the question is whether the recent calm “belies a more turbulent time ahead as the multifamily industry anticipates changes to policy and interest rates.”
Clearly any talk of rent control at the federal level is gone, the report says.
Also, corporate tax breaks for real estate and deductions for pass-through entities from the 2017 tax law are likely to be extended or expanded.
Too, Fannie Mae and Freddie Mac, the most active multifamily lenders will likely face change based on previous statements from the Trump administration.
“At the same time, threats to implement steep tariffs and deport immigrants that comprise a solid chunk of construction workers raise concerns about rising costs, development delays and reduced demand for housing. Higher inflation could keep interest rates elevated and potentially stall increased transaction activity,” Yardi Matrix says in the report.
Read the full Yardi Matrix report here.
About Yardi Matrix
Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.
