Multifamily

SANTA BARBARA, CALIF. — Following a year of unprecedented performance, the anticipated slowdown in the U.S. multifamily market arrived in November, according to the latest Yardi Matrix National Multifamily Report. The average asking rent in the U.S. fell $9 during the month to $1,719, while year-over-year growth dropped to 7 percent, the lowest level in 17 months. The decreases are attributed to economic headwinds and deteriorating demand. The $9 rollback was the largest one-month decline in rents in over a decade. The deterioration in rents and slowdown of year-over-year performance were expected. Rent increases have exceeded normal growth patterns for nearly two years. Average asking rents increased by 22 percent nationally between January 2021 and October 2022. According to the report, this growth would be unsustainable even under optimal conditions. “With the economy softening, demand for units slowing and rising interest rates creating headwinds for housing, multifamily asking rent growth finally took a turn downward in November,” states the report. “The decades-high inflation rate has left household balance sheets in a weaker position than a year ago, while economic growth is slowing as the Federal Reserve raises interest rates.” Though rent growth has decreased in many metros during the fourth …