Multifamily Rents Record Largest Post-Pandemic Rise Yet, Per Report

U.S. multifamily rents grew 1.6% year-over-year in April, which represents the largest percentage increase since the beginning of the coronavirus pandemic in March 2020, according to the latest Yardi Matrix Multifamily National Report.

Overall, 117 out of the 134, or 87%, of markets surveyed by Yardi experienced positive year-over-year rent growth in April.

Month-over-month, rents were up 0.7% in the surveyed markets, increasing by $10 to $1,417 in April. The last time rents increased by $10 or more in a single month was well before the pandemic, in June 2015, Yardi researchers noted. 

Rental increases for the month were particularly strong in gateway markets, pointing to renewed demand in places previously hit hard by the pandemic. Of the top 30 U.S. multifamily markets, 24 experienced month-over-month rent growth of more than 0.5% in April. 

That growth represents a turnaround for many markets that had experienced soaring pre-pandemic rents that fell rapidly because of the crisis. In New York, for example, which saw a month-over-month uptick of 0.6% in rents, average rents are still down 12.6% compared with April 2020. San Francisco eked out a monthly increase of 0.1% in April 2021. Compared with a year ago, rents are down there 7.7%, according to Yardi.

Less expensive markets have done better year-over-year, the report found. The Inland Empire turned in a 9.4% increase compared with a year ago, while Sacramento and Phoenix grew 8.4% and 8.1%, respectively.

Since the beginning of the pandemic, roughly one out of every 14 multifamily properties saw occupancy rates drop by 5% or more, the report said. The declines were concentrated in urban assets in gateway metros, with New York, San Jose and Los Angeles taking the largest occupancy hits.