Property Management News

While economic growth and a strong job market have helped multifamily asking rents grow nationally in August, operators are now facing the rapid expense growth on that side of the ledger, led by mushrooming property-insurance costs, Yardi Matrix says it in its national report for August. “With rent growth slowing, property owners increasingly must implement strategies to pare expense growth to maintain and grow net income,” the report says. “After several years of stellar income growth, multifamily is facing headwinds that include not only decelerating rent gains but a rapid uptick in expenses. During the trailing 12-month period ending June 2023, expenses for multifamily... Read more

Concessions are pushing up costs and taking a bite out of profits. Redfin has an interesting look at the current state of multifamily rents. On one hand, they’re still incredibly high in an historical setting. On the other hand, it’s costing them in concessions. The firm said that the median U.S. asking rent in August was $2,052. The same period in 2022 was the record high, but that was only $2 more. And the asking rent in July 2023 was $2,038. A month-to-month fixation doesn’t necessarily tell where markets are going and what they’ll support. And medians are just that, a middle point. No way to tell how the distribution looks or how high or low the top or bottom of the... Read more