The Multifamily Bear Case: This Week’s Data

It was the seventeenth consecutive month of year-over-year rent decline for 0-2 bedroom properties.
Rents nationally were down by 1.1% from the previous year.
The median asking rent fell to $1,695, dipping below $1,700 for the first time since April 2022.
Median rent fell consistently across all units of all bedroom counts. Studios were down 1.3% year-over-year, 1-bedrooms and 2-bedrooms were both down 0.9%.

Multifamily rents fell 0.30% month-over-month
40.9% of rentals on Zillow offered concessions, a new record
The share of rental listings offering concessions increased by 2.3% month-over-month
The share of rental listings offering concessions increased by 8.3% from last year
Rent concessions are up from year-ago levels in 48 of the 50 largest metro areas
Since pre-pandemic, the income needed to afford rent has increased by 33.4%

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Apartment market conditions declined in the National Multifamily Housing Council’s (NMHC’s) most recent Quarterly Survey of Apartment Market Conditions. All four indices – Market Tightness (40), Sales Volume (41), Equity Financing (48) and Debt Financing (32) – came in below the breakeven level (50), signaling less favorable conditions this quarter.