While rent growth in certain regions, like the Sun Belt and Mountain West, has flattened or turned negative due to rising supply, the demand for multifamily housing remained robust.
Gateway markets in the East, and secondary markets in the Midwest led year-over-year rent growth. New York City saw a 5.4% increase, followed by Kansas City with 4.2% and Boston with 3.4%.
In some Sun Belt metros, asking rents have been under pressure. Austin posted a year-over-year decline of 4.9%, followed by Raleigh at -3.1%, and Phoenix at -2.4%.
“Rents have flattened or turned negative in some metros in those regions because of the wave of supply growth. With the typically slower winter months approaching and the supply wave set to continue through 2025, advertised rent growth in those regions will likely stay weak in coming months,” Yardi Matrix wrote in the report.
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Source: mpamag.com