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Multifamily Expenses Increase Above-Trend Levels, Reports Yardi Matrix

Multifamily Expenses Increase Above-Trend Levels

Annual per-unit expenses rose 7.1 percent year-over-year, led by property insurance increases

(SANTA BARBARA, Calif., Apr. xx, 2024) – Expenses for multifamily properties rose by 7.1 percent, or $593 per unit on a year-over-year basis, to $8,950 as of January 2024, according to a new special report from Yardi® Matrix. The analysis examined nearly 22,000 properties that use Yardi software.

Overall expense growth is decelerating but remained high: it peaked in 2022 (8.7 percent), but surpassed annual increases of less than five percent from 2018-2021. However, profitability at multifamily properties was also up over the same term. Nationally, the difference between the average annual gross income per unit and expenses equaled a $463 increase in NOI.

Expense growth varied by expense type and metro. By type it was led by property insurance (up 27.7 percent year-over-year), marketing (12.3 percent), administrative (9.6 percent) and repairs and maintenance (8.8 percent).

By metro, of the 129 markets reviewed by Matrix, 99 recorded increases of five percent or more and 28 had increased of ten percent or more. Overall growth was led by Spokane (18.9 percent); Tallahassee (18.8 percent); Lafayette, La. (18.1 percent); Portland, Maine (14.7 percent) and Pensacola, Fla. (14 percent). Among Matrix’s top 30 metros by size, the top three markets for expense growth were Tampa (12.8 percent), Orlando (11.5 percent) and Miami (11.3 percent). Increases in Florida were driven especially by increases in property insurance.

By region, the Southeast recorded the largest increase in costs, up 8.8 percent. Next were the West (7.3 percent), the Midwest (6.4 percent), the Southwest (6.0 percent) and the Northeast (4.7 percent). By market size, tertiary markets posted the largest increase (7.9 percent), followed by secondary markets (7.1 percent) and gateway markets (5.4 percent).

With rental income growth slowing—multifamily rents rose 0.6 percent year-over-year thorough February—property owners must improve operating efficiency by streamlining processes and implementing property management technologies.

Read the latest multifamily expense analysis from Yardi Matrix.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit to learn more.

About Yardi

Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit

About the author

Jeff Adler

Jeffrey Adler is Vice President, of Yardi® Matrix, the data division of Yardi Systems.

Yardi® Matrix is a US multifamily, student, office, medical office/lab space, industrial, and self-storage asset information toolset for originating, underwriting, and asset managing commercial real estate investments, with over 800 clients worldwide. Yardi® Matrix provides investment strategy, market and institutional research reports leveraging the underlying property level detail of 135 markets, >92,000 multifamily properties and >18 MM units. Mr. Adler also leads Commercial Property Executive and Multi-Housing News, two digital media websites.

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