Multifamily rents were flat in February according to Yardi Matrix, but the company sees tests and challenges coming.
The report asks, “Will economic volatility impact the robust demand for apartments?”
Highlights of the monthly report:
- With economic uncertainty on the rise, U.S. multifamily rents continued in a holding pattern in February. The average U.S. advertised asking rent increased $1 nationally in February to $1,751, while year-over-year rent growth was unchanged at 1.2%.
- Multifamily rent growth performance continues to be exceptionally regional. The top 10 in the Matrix ranking of major metros comes entirely from the Midwest and Northeast.
- Single-family build-to-rent advertised rates were unchanged at $2,165, while year-over-year growth remained at 0.2%. There is a wide variance among metros, with Detroit (6.0%), the Inland Empire (5.2%) and Nashville (5.1%) leading the way and Austin (-4.6%) at the bottom.
In typical seasonal pattern, advertised rents “have treaded water of late, which is not a knock given that 2024 recorded its highest number of deliveries in decades,” the report says.
There are questions around the absorption of supply in key markets and whether rents will turn positive in these markets. High-supply markets continue to record some of the largest declines as absorption fails to keep pace with deliveries. In Austin, advertised rents fell 0.4% month-over-month and in Denver, rents fell 0.5% month-over-month
Where the economy goes is a question
“After years of stability and consistent job growth, the country is getting a dose of new policy that has roiled the financial markets. Some estimates put the number of layoffs in February at more than 170,000, the largest number since the global financial crisis,” the report says.
Too, the report says, tariffs and the uncertainty about policy is leading some businesses to wait for clarity before investing.
About Yardi Matrix
Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.