Multifamily advertised rents rose in July on the back of the strong economy, Yardi Matrix said in the July report
“Job growth remained robust while inflation continued to ease, raising hope for interest rate cuts. Meanwhile, July saw a resumption in advertised rent growth in high-supply markets where it had been negative,” the report says.
Highlights of the report
- Multifamily advertised rents rose for the sixth straight month in July as demand coming from economic growth and demographics remained consistent. The average U.S. advertised rent increased by $4 to $1,743, while year-over-year growth rose by 20 basis points to 0.8%.
- Although year-over-year rent numbers are weak by historical standards, July produced encouraging signs, including a rebound in growth in some Sun Belt metros that have struggled over the past year due to the heavy delivery pipeline.
- Single-family rental properties continued their strong performance in July, with advertised rents rising $5 nationally to a record-high $2,171. The year-over-year growth rate moderated again, declining 10 basis points to 1.0%. Occupancy rates fell 10 basis points to 95.3% in June.
- The national occupancy rate in June was 94.6% for the seventh straight month, down 0.4% year over-year. Only two metros posted year-over-year increases: Las Vegas, which at 93.6% is up 0.7% year-over-year, and the Twin Cities, which at 95.0% is up 0.1% from a year ago. The biggest drops in occupancy rates have been in Indianapolis, Houston, Dallas and Kansas City (all down 0.8%).
The strong economy has continued to lead to strong demand for rental housing, the report says. The U.S. gross domestic product grew by 2.8% in the second quarter, while the economy added 1.3 million jobs in the first half of 2024.
“There are signs the economy will cool, but the worst-case scenario is likely to be a soft landing rather than a hard recession,” Yardi Matrix says in the report. “Although performance so far has been encouraging, we expect continued high levels of new deliveries for the next 15 to 18 months, so there’s a lot more to contend with ahead.”
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.
