US Asking Rents Inch Lower for Second Consecutive Month in October

According to the latest Yardi Matrix Multifamily Report, the average US asking rent declined slightly for the second consecutive month in October, slipping $3 to $1,718. Year-over-year, growth moderated at 0.4%, down from 0.8% in September and from 6.5% in December 2022.

The national occupancy rate also inched lower to 64.9%, the first decline in four months. According to the report, occupancy was either down or unchanged year-over-year in September in all but four markets—Chicago, Denver, New York, and Seattle.

The modest positive growth in metros in the Northeast and Midwest was offset by modest negative growth in the Sun Belt and West. Rent growth turned negative in 14 of Yardi Matrix’s top 30 metros, with most of these markets (particularly in the Sun Belt) being impacted by the recent influx of supply and the rapid rent increases seen over the past two-and-a-half years.

Yardi Matrix notes that absorption remains strong in many markets where rent growth is negative, including Austin, Texas; Orlando, Florida; Nashville, Tennessee; Phoenix, Arizona; and Raleigh and Charlotte, North Carolina. According to the report, “Rents are receding in these metros due to the robust delivery pipeline and rapid rent increases in recent years that have reduced affordability.”