The multifamily market has remained resilient in the face of economic challenges, as solid demand kept rents rising but at a slower pace than in previous years.
The average asking rent increased $5 in April to $1,709, according to the latest National Multifamily Report from Yardi Matrix. Year over year, rent growth slowed to 3.2%, down 80 basis points from March.
“Demand is boosted by the tight job market and strong consumer balance sheets, although the question is how much longer those conditions will persist,” Yardi wrote in the report. “First quarter GDP growth was 1.1%, as consumer spending outweighed waning business inventories. However, economic growth is likely to ebb in coming quarters due to factors including a slowdown in housing sales and construction from higher interest rates, dwindling post-pandemic consumer savings, a squeeze on credit as banks try to de-risk loan portfolios, and the reduction of the Federal Reserve’s balance sheet.”