Rent growth stalled in September, reflecting a cooling economy and rising interest rates
SANTA BARBARA, Calif., Oct. 07, 2022 – U.S. multifamily rents remained flat in September 2022 from the previous month, reflecting the impact of the economic slowdown and Fed interest rate hikes, according to a new national multifamily report from Yardi® Matrix.
Asking rates stabilized at $1,718 for the month. Year-over-year rent growth slid more than a full percentage point for the third month in a row, bringing it below 10% for the first time since July 2021.
“Key fundamentals remain strong” in the market, with national asking rents maintaining record highs and occupancy rates holding steady at around 96% since June 2021, although “the market may be coming to an end of its extraordinary run of rent growth,” the report says.
Rents in the single-family rental segment fell by $7 to $2,081 in September, the second consecutive month of decline, while year-over-year growth fell 170 basis points to 7.8%. The sector’s outlook remains strong, the report says, because many prospective homebuyers who are priced out of the market turn to single-family rentals.
Read the full report for insight into the impact of supply, demand, demographics, employment, migration and more on the multifamily market. The September report includes two new features – lease renewal percentages and renewal rent growth, and rent-to-income ratios – that will be included in future monthly reports.
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