U.S. multifamily advertised rents rose $4 month-over-month in April to an average of $1,758, but rents remain down 0.2% year-over-year., Yardi Matrix reported. Although April saw a second month of growth after declining during the winter, the increase was “tepid” compared to historical seasonal levels, according to the firm’s Multifamily National Report. Advertised rents are up 0.4% year to-date through April, about one-third of the average growth rate between 2012 and 2019.
Regardless of broader economic conditions, such as the ongoing conflict with Iran, “the elevated volume of new supply working through lease-up remains the primary constraint on rent growth,” the report said. “Meanwhile, demand has softened, as absorption has been stagnant in the past few quarters.
“With population growth moderating, migration trends cooling and the economic outlook remaining uncertain, a near-term acceleration in demand appears unlikely,” according to Yardi Matrix. “As a result, rent growth is expected to recover gradually as supply normalizes and excess inventory is absorbed
over time.”
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