In February, Yardi Matrix reported that nationwide asking rents for apartments experienced their first increase in over seven months. The average U.S. asking rent rose by $1 to $1,713, a 0.6% year-over-year increase, while occupancy decreased by 60 basis points to 94.5% as of January.
Rent increases were seen in markets located in the Northeast and Midwest regions, while Sun Belt markets with high supply saw rent contractions. Out of Yardi Matrix’s top 30 metros, thirteen posted declines in rent and five had decreases of more than 3% compared to last year’s rates. Only San Francisco showed positive growth with a slight increase of 0.l%.
Although there are signs that rents are stabilizing overall, various factors such as supply levels,demand trends,and regional metrics will play a significant role in determining the market’s performance through2024.Occupancy is expected to continue declining due to an estimated one million new rental units entering the market by the end of2025.
AccordingtotheYardiMatrix report,”Whilehigh-demandmarketsmaysee weakrentgrowthoverthenextyearortwo,the foundation has been laid for future rebound as construction starts decrease and deliveries declinein2026and2027.”
Pictured: Kansas City,Missouri which experienced month-over-month growthinapartmentrents.
The article “Apartment Rents Rise Nationally for First Time In Seven Months” was originally published on Connect CRE.
