Top U.S. Multifamily Rent Growth Markets — Q4 2024
The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle with emerging opportunities. The sector’s resilience stood out during the year, amid a shifting economic landscape and volatile interest rate environment. Multifamily demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.
As was the case throughout the year, the top rent markets during the fourth quarter represented several regions, with varying strengths and characteristics.
The Miami multifamily market once again led country for rent growth, standing atop the list for the second consecutive quarter. Effective rents in the market were up 4.6% year-over-year, finishing at $2,200/unit. Miami has become a premier financial hub, attracting high-profile talent from around the globe. Historically, the market has been driven by strong international and domestic migration. Large-scale deportations and potential declines in international immigration pose risks to demand.
Greensboro/Winston-Salem, which did not finish inside the top 12 in the previous quarter, jumped into the number two slot at year end. Effective rents climbed 4.5% over the past 12 months, finishing at $1,159/unit. Multifamily demand in the Piedmont Triad region has been driven by housing affordability and low cost of living, while low business costs and a strong manufacturing sector has supported the local economy, which includes a growing life sciences sector.
Detroit spent much of the year near the top of this list, finishing in the fourth slot. Rents in the Motor City grew 3.3% during the year, finishing at $1,297/unit. The city continues its revival as a 21st-century downtown.
Here’s a full look at the top U.S. multifamily rent growth markets for Q4 2024, with data provided by Moody’s Analytics CRE.
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