Average effective rent growth for new leases has shown strong improvement over the last year. After peaking out a modest 0.9% gain in the previous twelve-month period, the national average effective rent has grown by 3.5% over the last twelve months. Below the national average, some important distinctions have emerged. All numbers will refer to…
This year’s opening quarter included multiple interesting developments that will have ramifications for multifamily performance as 2025 unfolds. Outside the industry, in just the first few days of April, seismic U.S. trade policy changes are just beginning to make their early impact felt. As has been the case for the last handful of years, there…
A more detailed analysis of multifamily performance in the first quarter will be the subject of the forthcoming ALN newsletter for April. In broad strokes, new supply continued its surge, apartment demand cooled, and rent growth picked up. One area below the national level in which some clear differences emerged was price class performance. All…
The last three months have been encouraging for the multifamily industry and provide some early cause for cautious optimism looking forward.
This year, the number of new units is expected to decline from its 2024 peak but will still be substantial relative to historic norms.
Just one month into the new year, there are already interesting developments occurring in multifamily performance.
The final installment of the ongoing series looking back at various facets of multifamily demand last year is average occupancy. As already discussed, improved apartment demand in 2024 was insufficient to offset generational new supply. This ongoing imbalance was a headwind to rent growth – although it too showed improvement from 2023. The mechanism by which the supply and demand…
One theme of 2024 multifamily performance was that improvement was achieved but with further ground to gain. One metric that typified this theme was rent growth. After a dismal year in 2023, average effective rent growth for new leases took a major step in the right direction last year. All numbers will refer to conventional…
2024 was a key step in the right direction for the multifamily industry. In the face of historic new supply pressure, the decline in national average occupancy was smaller than in 2022 or 2023. Net absorption showed robust annual improvement for a second straight year. Average effective rent growth for new leases more than doubled…
