Top 5 Markets for Forecasted Multifamily Growth

Amid rapidly rising interest rates and still murky economy outlook, the multifamily market in the U.S. is beginning to feel the impact. Multifamily rents continued to rise this October, by 8.2 percent year-over-year to an average of $1,727. However, the growth was the slowest recorded since mid-2021, according to the October National Multifamily Report from data firm Yardi Matrix.

Yet even in this environment of slower growth, 25 of the 30 top U.S. markets posted multifamily rent growth of 5.0 percent or more. And many of the top markets have reached rent growth closer to 10.0 or 11.0 percent. Here’s Yardi Matrix’ breakdown of the top 5 markets, along with forecasts for their multifamily rent growth for the full year 2022.

5. Dallas, TX

Year-over-year rent growth as of Oct 2022: 10.5%
Forecast rent growth as of Oct for year-end 2022: 8.2%
Year-over-year job growth (six-month moving average) as of Aug 2022: 7.4%
Completions as a % of total stock as of Oct 2022: 2.7%

4. San Jose, CA

Year-over-year rent growth as of Oct 2022: 10.6%
Forecast rent growth as of Oct for year-end 2022: 9.0%
Year-over-year job growth (six-month moving average) as of Aug 2022: 5.4%
Completions as a % of total stock as of Oct 2022: 3.1%

3. Miami Metro, FL

Year-over-year rent growth as of Oct 2022: 11.4%
Forecast rent growth as of Oct for year-end 2022: 10.1%
Year-over-year job growth (six-month moving average) as of Aug 2022: 5.6%
Completions as a % of total stock as of Oct 2022: 4.3%

2. Orlando, FL

Year-over-year rent growth as of Oct 2022: 11.6%
Forecast rent growth as of Oct for year-end 2022: 8.8%
Year-over-year job growth (six-month moving average) as of Aug 2022: 6.3%
Completions as a % of total stock as of Oct 2022: 3.3%

1.Indianapolis, IN

Year-over-year rent growth as of Oct 2022: 11.8%
Forecast rent growth as of Oct for year-end 2022: 10.2%
Year-over-year job growth (six-month moving average) as of Aug 2022: 3.3%
Completions as a % of total stock as of Oct 2022: 1.3%