Average apartment rent rose $10 last month, its lowest rate since January, according to the latest Yardi® Matrix Multi-Family Report. The average rent in the United States was a record $1,717 in July.
Year-over-year growth slowed 110 basis points to 12.6%, or 260 basis points from February’s high of 15.2%.
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“Rent growth remains high nearly everywhere by historical standards, but the rate of increase in high-growth metros is declining,” Matrix analysts say. For example, year-over-year rent growth in the top performing cities of Orlando (20.2% in July), Miami (19.5%) and Tampa (17.4%) is still high, but has fallen by three to four percentage points in each market compared to the previous one. month.
Demand and rent growth remained strong across the country, with rent growth up at least 10% year-over-year in 24 of Yardi Matrix’s top 30 cities. A sign of stability for the sector, national occupancy rates were 96% for the third consecutive month.
The average rent for in-demand single-family units rose $7 in July to $2,092, while year-over-year growth fell 60 basis points to 11.2%.
“Moderate rent growth may be the product of an inevitable mean reversion, coinciding with the sudden downturn in the economy, or a combination of both,” the report said. Record rental growth in 2021 was driven by record absorption of 580,000 units in 2021, according to Yardi Matrix. Absorption is about half that rate in 2022, consistent with a normal year.
Find out more in the latest multifamily report.