{"id":5203,"date":"2022-12-13T11:42:09","date_gmt":"2022-12-13T11:42:09","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=5203"},"modified":"2023-09-13T04:51:26","modified_gmt":"2023-09-13T04:51:26","slug":"rents-drop-as-demand-declines","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/rents-drop-as-demand-declines\/","title":{"rendered":"Rents Drop as Demand Declines, Yardi Matrix Reports"},"content":{"rendered":"

Average U.S. asking rents dropped $9 to $1,719 in November<\/em><\/p>\n

SANTA BARBARA, Calif., Dec. 13, 2022<\/strong> \u2013 The anticipated slowdown in multifamily performance arrived last month, as the sector clocked its lowest year-over-year growth since mid-2021, \u00a0according to the latest Yardi\u00ae Matrix National Multifamily Report.<\/a><\/p>\n

U.S. asking rents fell $9 during the month to $1,719, while year-over-year growth dropped to seven percent, the lowest level in 17 months. The decreases are attributed to economic headwinds and deteriorating demand. The $9 rollback was the largest one-month decline in rents in over a decade.<\/p>\n

The deterioration in rents was not unexpected. Rent increases have far exceeded normal growth patterns for nearly two years. Average asking rents increased by 22 percent nationally between January 2021 and October 2022, a rate that would be unsustainable under optimal conditions.<\/p>\n

\u201cWith the economy softening, demand for units slowing and rising interest rates creating head- winds for housing, multifamily asking rent growth finally took a turn downward in November,\u201d states the report. \u201cThe decades-high inflation rate has left household balance sheets in a weaker position than a year ago, while economic growth is slowing as the Federal Reserve raises interest rates.\u201d<\/p>\n

Absorption of apartments has been positive in 2022, but well below 2021 levels that were boosted by strong job growth and household savings coming out of the pandemic.<\/p>\n

Average U.S. rents are up 6.4 percent year-to-date, and the national occupancy rate, while slipping in recent months, is a healthy 95.6 percent. And while rent growth has turned negative in many metros this fall, every one of Matrix\u2019s top 30 metros maintains positive year-over-year growth.<\/p>\n

The single-family rental market is also declining. The average U.S. asking rent dropped\u00a0$5 in November to $2,091, while the year-over-year increase fell by 80 basis points to 5.9 percent.<\/p>\n

Learn more in the latest Matrix National Multifamily Report.<\/a><\/p>\n

Yardi\u00a0Matrix offers the industry\u2019s 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, industrial, office and self storage property types. Email matrix@yardi.com<\/a>, call (480) 663-1149 or visit yardimatrix.com<\/a> to learn more.<\/p>\n

About Yardi<\/strong><\/p>\n

Yardi\u00ae<\/sup> develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com<\/a>.<\/p>\n\n\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Average U.S. asking rents dropped $9 to $1,719 in November SANTA BARBARA, Calif., Dec. 13, 2022 \u2013 The anticipated slowdown in multifamily performance arrived last month, as the sector clocked its lowest year-over-year growth since mid-2021, \u00a0according to the latest Yardi\u00ae Matrix National Multifamily Report. U.S. asking rents fell $9 during the month to $1,719, […]<\/p>\n","protected":false},"author":753,"featured_media":5207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[28,29],"tags":[444],"class_list":["post-5203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-press-releases","tag-multifamily-outlook-2022"],"yoast_head":"\nRents Drop as Demand Declines, Yardi Matrix Reports - Yardi Matrix Blog<\/title>\n<meta name=\"description\" content=\"The slowdown in multifamily performance arrived last month, as the sector clocked its lowest Y-O-Y growth since mid-2021, \u00a0according to Yardi Matrix data.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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