It finally happened: Multifamily rents across the United States hit a slowdown. According to the latest Matrix multifamily report from Yardi, U.S. multifamily rents flattened in October, staying level at an average of $1,166.
This is the first Matrix survey in 2015 in which multifamily rents did not rise month-over-month.
Apartment rents in October, though, were higher than they were a year ago. According to Yardi, multifamily rents averaged 6.7 percent higher in October of this year compared to the same month one year earlier.
And don’t expect apartment activity to slow throughout the Midwest. Markets such as Chicago, Minneapolis, Indianapolis, Cincinnati and Kansas City continue to see plenty of new apartment construction. Owners aren’t yet resorting to concessions in most Midwest markets yet to draw tenants to these new spaces.
The Yardi report predicts that apartment rents will continue to rise at solid rates for many Midwest markets. According to the report, multifamily rents should rise 6 percent in the Nashville and Knoxville markets in Tennessee in 2015, and 4.5 percent in Kansas City.
Yardi predicts that multifamily rents will rise 3 percent in Chicago this year and 2.8 percent in the Minneapolis/St. Paul market.