According to the latest Yardi Matrix, U.S. multifamily rents rose $4 in May to $1,381. However, year-over-year, the increase fell to 2% (down from 2.5% in April) which was the largest one-month drop in basis points in over 6 years. They report that rents continue to grow moderately in most metros and are weaker than last year’s increase for the same period.
“May’s performance continued a two-year pattern of rent deceleration primarily attributable to pressure from deliveries in most metros. That has taken a toll on occupancy rates and growth, even in markets with strong demand. With more than 600,000 units under construction and likely to be completed within two years, deliveries will continue to pressure rents.”
