SANTA BARBARA, CA–Although multifamily rents nationwide increased in May for the third month in a row, Yardi Matrix is continuing to chart a deceleration in the growth rate. Average US monthly rents rose $4 to $1,316, according to Yardi Matrix's monthly survey of 121 markets.
On a year-over-year basis, rents were up 1.5% nationwide in May. The Y-O-Y growth rate was down 40 basis points from April, 90 bps from March and well below the 5.3% growth rate of a year ago. “Deceleration is more than firmly established, as the Y-O-Y growth rate has decreased for 13 straight months since reaching 5.4% in April 2016,” according to the Yardi Matrix report. The last time the Y-O-Y was as low as 1.5% was in April 2011.
The increase in supply nationally combined with issues that vary by market, such as slowing demand or affordability, are behind the declines in rent growth. Yardi Matrix projects 360,000 units to come on line in 2017, on top of 281,000 units that saw the light of day in 2016.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
