There are many different reports on multifamily rents — slight growth month-over-month, some drop year-over-year, all depending on where a property sits in the country.
According to a Trepp fall report looking back at the second quarter, 11 major multifamily REITs that combined own 526,347 units were doing somewhat better, with an average of 1.82% year-over-year increase. That was a lift of 0.62% from Q1. Even then, rent changes depended on where in the country the REIT operated, with major market holdings doing far better than properties in the Sun Belt.
That last point is a big change. Sun Belt apartments had seen "outsize rent growth" after pandemic shutdowns, said Trepp. The advantage is now largely gone. The amount of construction that happened in the most popular markets in the region caused a demand and supply imbalance that has depressed rent growth and increased vacancies.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
