Minimal Rent Growth Expected for U.S. Multifamily Market in 2024

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Rent performance varies by region, with national average expected to decelerate

U.S. multifamily rent growth and occupancy have deteriorated since the 2022 peak, and the 2024 Multifamily Outlook from Yardi® Matrix anticipates further deceleration in the second half of this year.

According to the new report, advertised multifamily rents are up 1.1 percent year-to-date, with year-over-year increases maintaining each month at around 0.6 percent. Analysts expect that advertised rent growth will be around 1.7 percent for the calendar year, far below the 24 percent gain recorded in 2021 and 2022.

Regional performance varies. A strong labor market and economic growth are supporting steady rent growth in the Midwest and Northeast, but an influx of new supply is putting pressure on rents in the Sun Belt, states the report.

Inbound new supply is expected to continue to impact rents nationwide. Up to 553,000 of 1.2 million units under construction are forecast to come online by the end of 2024.

“Supply growth has climbed in recent years due to strong demand for units, rapid rent growth and an influx of development capital,” state Matrix analysts. Between 2021 and 2023, 1.3 million units came online, while in the first half of the 2010s decade only 858,000 units were delivered, according to Matrix tracking.