Top U.S. Multifamily Rent Growth Markets — Q3 2023

During the third quarter of 2023, multifamily rent growth in the U.S. continued to be distributed throughout a variety of markets, which contrasted with the previous two years when Sun Belt markets dominated the list. Nationally, rent growth decelerated compared with the skyrocketing highs of the last two years, although it remained positive. National rent growth was up 2.2% year over year, which was lower than the 11.1% growth rate reported one year ago and the lowest rate since 2021.

The highest rent growth rate over the last 12 months was registered in San Diego, where the average effective rent increased 5.1%. Rental demand in Southern California continues to be driven by high housing costs and other obstacles to homeownership. Over the long run, San Diego’s well-educated workforce will continue to drive the local economy, on the strength of the area’s innovation-driven, high-technology economy.

Central New Jersey (up 5.0%) finished in the second spot on the list, followed closely behind by Northern New Jersey (up 4.5%) in the fifth spot. These markets have benefited from a wide variety of high-value industries, including financial services and healthcare, as well as the benefit of coastal distribution ports.

Nashville (up 4.8%) had the third highest rental growth rate over the last 12 months. Positive net migration, an advantageous business climate, and reasonably priced housing have all contributed to the rise in rental demand in this area, as they have in many others on the list. Over the past decade, Nashville has seen an extraordinary amount of public and private investment.

Here’s a full look at the top U.S. multifamily rent growth markets for Q3 2023, with data provided Moody’s Analytics CRE.

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