The U.S. multifamily market has experienced a decline in rent growth and occupancy since reaching its peak in 2022, according to the 2024 Multifamily Outlook from Yardi Matrix. This trend is expected to continue throughout the second half of the year, with analysts predicting a modest rent growth of approximately 1.7% for the entire calendar year – significantly lower than the impressive gains seen in both 2021 and 2022.
According to experts at Yardi Matrix, there are several factors contributing to this slowdown in rent growth. While demand for rental units remains strong and absorption rates remain high, increased supply and affordability concerns have put pressure on rents.
This influx of new supply is expected to continue impacting rents across the country as well. By December of 2024, it is estimated that up to half a million units out of over one million currently under construction will be completed.
Matrix analysts attribute this increase in supply largely due to high demand for rental properties coupled with rapid rent increases and an influx of development capital into this sector over recent years – resulting in more than double the number of new units being delivered between 2010-2013 compared with those delivered during first half decade period prior (858K vs. just over one million).
