Top U.S. Multifamily Rent Growth Markets — Q4 2022

The U.S. multifamily market posted another strong year in 2022, although it began to show signs of slowing. The overall average effective rent increased 9.7% year-over-year, the second highest annual rent growth total on record, second to only last year’s skyrocketing pace of 12.7%. While housing migration and rental demand over the last few years have been dominated by more affordable Sun Belt markets, a more diverse selection of markets comprised the top rent growth list for 2022.

The top rent growth market went to Charleston (SC), where effective rents grew 15.8% during the year, following up 2021’s record market high of 19.2%. Charleston wasn’t the only Carolinas’ market on the list. Greensboro/Winston-Salem finished fifth with a 13.5% growth rate.

Apart from the usual Sun Belt markets that have dominated this list over the last few years, a few of the largest coastal markets also made the list. Los Angeles finished second, bouncing back with 15.1% rent growth in 2022, up from 8.2% in 2021 and a decline of 4.5% during 2020. New York also continued its surging recovery, finishing seventh at 13.4%, although was down from 18.2% last year. Rents in this market fell 11.4% during 2020.

Here’s a full look at the top U.S. multifamily rent growth markets for Q4 2022, 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.