Last month marked the third straight month of rent gains, according to Yardi Matrix's National Multifamily Market report. However, rental growth is decelerating, and eight metros posted negative YoY growth. In May, the average U.S. multifamily asking rent reached $1,716, increasing by 2.6% YoY, 70 basis points below April's rate and the lowest since Mar. 2021. - Los Angeles (-2.8%), Phoenix (-2.6%), Austin (-1.0%), Seattle (-0.9%), Atlanta (-0.4%), Sacramento (-0.4%), San Francisco (-0.4%, and Orange County (-0.2%) were the cities that posted a negative YoY growth.
- Indianapolis saw the highest gain of 7%, which Kansas City and New York City followed at 6%.
- According to the report, slowing demand will likely continue in the short term, as the pipeline has one million units underway, of which 900,000 are expected to be available by the end of 2024.
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