Latest Yardi Matrix Rent Forecast Focuses on Regional Supply

The multifamily market is a tale of two supply scenarios, shows a new special report from Yardi Matrix.

Of the 134 U.S. cities reviewed by Yardi Matrix, those that recorded substantial growth during the pandemic and are now receiving high volumes of new supply are posting stagnant or falling rents. Nine of 20 markets that saw rents fall since the beginning of the year are inFloridaorTexas. Other pandemic high-growth markets likeAtlanta, Raleigh-Durham andSalt Lake Cityare also experiencing lower average asking rents than a few months ago.

Secondary markets in the Midwest, Northeast and South are still posting strong growth in asking rents. Markets with increases higher than two percent includeAlbany;Milwaukee; Worchester-Springfield;Louisville;Cincinnati;Des Moines;Richmond;Madison;Lafayette, Ohio;Youngstown;Providence;Northern Virginia;Portland, Maine; andScranton-Wilkes-Barre.Honolulu, where supply is a consistent challenge, marked 5.7 percent growth year-to-date.

"We still expect markets with lots of supply to continue to struggle to realize gains this year, but that is only a supply issue, and once those new units get absorbed all of those markets will be back in good shape," notes the report.

Rent growth in 2025 will be stronger than this year, and in 2026 even more so, as the current influx of supply to be fully absorbed. Gain more insights in the latest Multifamily Rent Forecast Update from Yardi Matrix.

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