CoStar Analytics
Summary:
Multifamily rent growth experienced a significant acceleration in 2021 and early 2022, leading to concerns about affordability and calls for rent control. However, since late 2022, the growth has slowed, and in some major markets, rents have even declined. On a national level, the average asking multifamily rent is only $65 higher than it would have been with pre-pandemic growth rates. Markets in Florida, particularly Palm Beach, show the largest positive differences, with rents significantly higher than projected. In contrast, several large coastal California markets, including San Francisco, San Jose, and East Bay, have lower rents than anticipated. The variations are more pronounced between different property types, with four- and five-star properties experiencing the greatest absolute differences. Miami and Orange County have notably higher rents for high-end properties, while San Francisco’s most expensive units are cheaper. Lower-priced one- and two-star properties generally have marginal increases, with some renter households paying slightly less than anticipated in a few markets. Bay Area markets stand out for lower rents in one- and two-star properties compared to pre-pandemic projections, while Palm Beach has higher rents in this category.