US Multifamily Markets End 2024 With Lower Asking Rents

Yardi, a real estate software developer, released its Yardi Matrix Multifamily Report for the US on Tuesday. The report revealed weak performance in the multifamily market at the end of 2024, with advertised asking rents declining $4 to $1,742 in December. Year-over-year, growth slowed to 0.6%, the 16th consecutive month with increases below 1%. Performance varied across different markets and regions.

The occupancy rate remained unchanged year-over-year through November, at 94.7%.

Through the first 11 months of 2024, 404,000 multifamily units were absorbed nationally while 442,000 units were completed. According to Yardi, 8.5% more units came online than were absorbed, but regional differences abounded. For example, more units were absorbed than completed in the Midwest—62,000 absorbed versus 51,500 completions. Meanwhile, the Northeast saw 53,000 units absorbed versus 46,400 completions.

The single-family rental (SFR) market lagged behind multifamily in 2024, with regional performance varying. Nationally, advertised asking rents dropped $7 in December to $2,141, reflecting a 0.8% year-over-year decline, while occupancy held steady at 95% in November. However, the SFR market outperformed multifamily in high-growth secondary metros such as Greenville, SC; Salt Lake City, UT; Denver, CO; and Nashville, TN.