Top U.S. Multifamily Rent Growth Markets — Q3 2024
Following the rapid pandemic-related economic contraction and its quick recovery, the U.S. multifamily market held steady in a more normalized cycle during the third quarter of 2024. Rental demand remained strong, driven by solid wage growth and new household formation, while new leaders emerged among the top markets for rent growth.
The Miami multifamily market had stood atop the list of top rent growth markets over the past 12 months. Effective rents were $2,128/unit, up 2.8% from a year ago. In the second quarter, Miami finished seventh. Miami’s economy has been driven recently by strong international and domestic migration, along with a well-established tourism industry. Additionally, the Downtown Miami Master Plan has set goals to connect and maximize the potential of the downtown area, taking advantage of its culture and community spaces.
Philadelphia made a new appearance on the list, finishing second with a 2.4% annual rent growth rate. Recent downtown investment has boosted job growth, and the conversion of office buildings to residential has provided a solution to remote and hybrid work.
Detroit finished in the number three spot for the third quarter after finishing second in the previous quarter. Multifamily rents rose 2.3% over the last twelve months as the city continues its revival as a 21st-century downtown.
The Milwaukee multifamily market fell to number six after finishing in first place in three consecutive quarters. The average effective rent there grew 1.7% year-over-year. The market’s well-educated workforce and strong manufacturing sector should continue to drive this thriving economy for years to come.
Here’s a full look at the top U.S. multifamily rent growth markets for Q3 2024, with data provided by Moody’s Analytics CRE.
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