Yardi Matrix has revised their forecast for apartment rent growth in 2024, thanks to a strong job market. In January, multifamily asking rents saw an increase of 0.07%, breaking a five-month streak of declines.
Out of the 142 markets tracked by Yardi Matrix, only 61 experienced decreases while the remaining majority saw increases or remained flat. The Northeast and South regions had the highest increases in midsize cities such as White Plains and Buffalo in New York, Birmingham in Alabama (pictured), Worcester-Springfield in Massachusetts, and Columbus in Georgia. Conversely, Western markets and Florida consistently showed decreases.
On a national level broken down by asset class, Renter-by-Necessity (RBN) segment rents outperformed Lifestyle with an increase of 0.08% compared to just 0.04%. According to analysts at Yardi Matrix: “Overall performance for asking rents was surprisingly strong considering that January is typically a weak month with negative trends expected.”
The positive job reports coupled with improved consumer confidence have pushed back projections for any potential recession until late-2024 or early-2025 according to Yardi Matrix experts.This has also led them to revise their national forecast for rent growth from an initial estimate of just .8% up significantly higher at now projected rateof1/8%. However,the report cautions that this may be tempered somewhat due largelyin parttoan influxof new supply coming online throughout this year which could potentially dampen rental rates especially within larger Sun Belt markets.
This article originally appeared on Connect CRE’s website.
