Top U.S. Multifamily Rent Growth Markets — Q1 2024

The U.S. multifamily market remained strong to start 2024, following three years of robust performance. Rent growth remained stable and vacancy rates sat near historical lows, as the tight housing market continues to push would-be homebuyers into lifestyle renting. And now that pandemic-related migration trends have settled, a diverse group of markets has risen to the top of the rent growth list.

For the second quarter in a row, the Milwaukee market led the nation in rent growth. Its average effective rent growth reached $1,308/unit at the end of the first quarter, a 2.2% year-over-year growth rate. Rental demand is expected to stay strong in Milwaukee over the near term, with absorption forecasted to outpace new construction over the next two years, driven by a well-educated workforce and strong manufacturing sector.

Central New Jersey slotted second on the list for the quarter, with rents growing 2.0% over the past 12 months. The tri-state area has seen outstanding performance over the past few quarters, with rents in Manhattan reaching new record highs, even before the spring and summer leasing season. The New York Metro market (New York City) also made the list at number 10, with a 1.2% annual rent growth rate.

Over the past few years, the Dallas multifamily market has stood out as one of the industry’s premier U.S. markets, attractive to residents and employers, as well as investors and developers. Not only has rent growth remained high, up 1.8% year-over-year, but the market has also led the nation in investment activity in each of the past two years.

Here’s a full look at the top U.S. multifamily rent growth markets for Q1 2024, with data provided Moody’s Analytics CRE.

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