With operating expenses still elevated and transaction volume lower than usual despite recent signs of life, improvement in the rent growth environment would be a welcome sight. Average effective rent growth for new leases rose 3.3% nationally over the last twelve months. That rate of appreciation more than tripled the gain from the previous twelve-month…
2025 has gotten off to an unusually volatile start for apartment demand on a month-over-month basis. Despite these early fluctuations, longer-term trends are uniformly positive. Both over the last twelve months, and year-to-date through April, national net absorption has continued along an upward trajectory that began in 2023. Encouragingly, the continued improvement has been widespread…
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.
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…
A violin plot is an interesting way to visualize quite a bit of information on the same chart, but it also isn’t as intuitive as other types of charts. I thought it might be worthwhile to walk through one looking at average effective rent growth across markets of various sizes from the last twelve months….
