Multifamily Rent Growth Slowing Down in Select US Metros

Recent reports from Yardi Matrix and Apartment List have indicated that rent growth in the United States is now in the single-digit range, with some metro areas even seeing negative rent growth. According to Yardi Matrix Manager of Business Intelligence Doug Ressler, new supply is beginning to meet growing demand rather than creating an imbalance. Rob Warnock, Senior Research Associate at Apartment List noted that even where rents have fallen year-over-year they are still 30% higher than pre-pandemic levels. Occupancy rates remain stable according to both reports; however, as more units come online property owners may start struggling to fill vacancies for the first time since early stages of the pandemic.
Ressler and Warnock believe that year over year rent growth will continue declining as new supply is absorbed but also note this could help increase affordability in near term while proving problematic for apartment owners and managers due increasing pressure on NOIs from decelerating rent growth and inflationary expenses. Year over year rental market could flip negative by summertime with low demand continuing through winter months according to Warnock’s predictions