Top U.S. Multifamily Rent Growth Markets — Q1 2023

The U.S. multifamily market continued to show signs of slowing during the first quarter of 2023. Average effective rents were up 5.9% year-over-year, down from the skyrocketing pace of 9.7% in 2022 and 12.7% in 2021. Over the last few years, the more affordable Sun Belt markets have dominated the list of top rent growth markets. However, over the last several months, a more diverse selection of markets has moved to the forefront.

The top rent growth market during the first quarter was Seattle. Rents in this market averaged $2,164/unit, up 12.4% from the same time last year. Housing demand in the Emerald City has been driven by its position as a global center for information technology, strong population growth, and a well-educated labor force. Layoffs in the technology industry may moderate demand in the coming year, although this market remains well-positioned over the longer run.

Several other large coastal markets made the list, including Boston (up 11.7%), San Jose (up 10.6%), and New York Metro (up 8.8%). Despite accelerated migration to the suburbs and the adoption of remote work during the pandemic, these cities remain hubs of innovation, magnets to venture capital, and attractive to renters. Notably, Chicago (up 8.2%) now has more people living downtown than before the pandemic.

Here’s a full look at the top U.S. multifamily rent growth markets for Q1 2023, with data provided by Moody’s Analytics CRE.

For more market insight, read our Special Report: Spring 2023 and view our other market research and multifamily posts in our research section.