U.S. Multifamily Rents Post Modest Monthly and Annual Gains in March
The multifamily and single-family rental sectors experienced modest rent increases in March, according to a recent report by Yardi Matrix. Both segments recorded an average monthly increase of $5 in advertised asking rents. On a year-over-year basis, rents were up by 0.4%.
While first-quarter rent growth was softer than typical, Yardi Matrix attributed the slow pace primarily to ongoing challenges in high-supply markets. Metro areas such as Austin, Denver, and Nashville saw declines in rents despite strong demand, indicating a supply-demand mismatch in these regions.
Looking forward, the rental market outlook remains uncertain due to heightened economic volatility. Yardi Matrix cited factors such as the impact of tariffs, an increasing number of layoffs, and weakening consumer confidence. Additionally, reduced immigration is expected to influence demand, with Moody’s forecasting U.S. population growth of less than 1.5 million in 2024—among the lowest growth rates in decades, excluding 2020.
While near-term conditions pose headwinds for stronger rent gains, demand fundamentals in many markets remain robust, suggesting stabilization may occur as supply and demand find equilibrium.
