Apartments.com Publishes April 2023 Rent Growth Report

Multifamily fundamentals showed signs of stabilization in April

Today, Apartments.com – a CoStar Group online marketplace – released an in-depth report of multifamily rent growth trends for April 2023 backed by analyst observations. For the first time since the third quarter of 2021, vacancy rates did not increase, holding steady at 6.7%.

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Year Over Year Rent Growth, by Market (Graphic: Business Wire)

“With the peak leasing season now underway, multifamily conditions started to show signs of stabilization,” said Jay Lybik, National Director of Multifamily Analytics at CoStar Group. “National year-over-year asking rent growth slowed to 2.1% at the end of April from 2.6% at the end of March, vacancy rates held steady and 34,000 units were absorbed, signaling a strong start to the second quarter.”

YEAR-OVER-YEAR RENT GROWTH SNAPSHOT, INDIANAPOLIS HOLDS STEADY WITH TOP SPOT

In April 2023, national average rents rose from $1,650 to $1,656 or by 0.4%. Indianapolis had the highest year-over-year rent growth at 6.1%, sitting just ahead of other Midwest markets like Cincinnati, St. Louis and Columbus. The Midwest region held six of the top 10 rent growth positions during the month of April.

Despite continued activity in the Midwest, year-over-year rent growth has slowed in many markets as demand for multifamily has weakened. Fast-growing Sun Belt markets, such as Las Vegas, Austin and Phoenix, that experienced significant in-migration during the pandemic are now seeing rents fall over the year.

MONTH-OVER-MONTH SHOWS POTENTIAL FOR STABILIZATION

Month-over-month data suggests the beginning of possible stabilization across the multifamily sector, with positive rent growth in 38 of the top 40 markets. Notably, Nashville and Raleigh saw month-over-month rent growth accelerate as a result of slight improvements in April vacancy rates.

LOOKING AHEAD

April’s multifamily findings boost the likelihood that the sector’s fundamentals will stop weakening and the second quarter will finish stronger than a year ago, setting up the potential for the quarter overall to outperform expectations. However, there are a few potential risks to be mindful of, including the economy falling into a recession in the second half of 2023, demand drying up and the significant number of deliveries expected throughout the year.

About CoStar Group

CoStar Group (NASDAQ: CSGP), is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

About Apartments.com

Apartments.com is the leading online apartment listing website, offering renters access to information on more than 1,000,000 available units for rent. Powered by CoStar, the Apartments.com network of sites includes Apartments.com, ApartmentFinder.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, ForRent.com, ForRentUniversity.com, After55.com and CorporateHousing.com.

Apartments.com is supported by the industry's largest professional research team, which has visited and photographed over 500,000 properties nationwide. The team makes over one million calls each month to apartment owners and property managers, collecting and verifying current availabilities, rental rates, pet policies, fees, leasing incentives, concessions, and more. Apartments.com offers more rental listings than any other apartments website, and innovative features including a drawing tool that allows users to define their own search areas on a map, and a "Travel Time" feature that lets users search for rentals in proximity to a specific address. Apartments.com creates easy access to its listings through a responsive website and iOS and Android apps, and provides unmatched exposure for its advertisers through an intuitive name, strategic search engine placements and innovative emerging media.

The Apartments.com network reaches millions of renters nationwide, driving both qualified traffic and highly engaged renters to leasing offices.

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