SANTA BARBARA, Calif., Oct. 07, 2022 – U.S. multifamily rents remained flat in September 2022 from the previous month, reflecting the impact of the economic slowdown and Fed interest rate hikes, according to a new national multifamily report from Yardi® Matrix.

Asking rates stabilized at $1,718 for the month. Year-over-year rent growth slid more than a full percentage point for the third month in a row, bringing it below 10% for the first time since July 2021.

“Key fundamentals remain strong” in the market, with national asking rents maintaining record highs and occupancy rates holding steady at around 96% since June 2021, although “the market may be coming to an end of its extraordinary run of rent growth,” the report says.

Rents in the single-family rental segment fell by $7 to $2,081 in September, the second consecutive month of decline, while year-over-year growth fell 170 basis points to 7.8%. The sector’s outlook remains strong, the report says, because many prospective homebuyers who are priced out of the market turn to single-family rentals.

Read the full report for insight into the impact of supply, demand, demographics, employment, migration and more on the multifamily market. The September report includes two new features – lease renewal percentages and renewal rent growth, and rent-to-income ratios – that will be included in future monthly reports.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post Multifamily Market Deceleration Detailed in New Yardi Matrix Report appeared first on Yardi Matrix Blog.

SANTA BARBARA, Calif., Sept. 22, 2022 – Average self storage street rates reduced slightly in August, according to the latest National Self Storage Report from Yardi® Matrix.

A national average overall street rate of $149 was recorded. Despite moderating street rate performance, demand continues to be strong.

The new self storage report focuses on areas of demand for storage units, which include apartment renters and Gen X (late 30s to 50s) customers.

“Gen Xers are among the biggest users of storage, with 44 percent reporting use of storage units and 21 percent planning to use it in the near future. But even as an increasing number of households use self storage, we expect to see further moderation of street rates the rest of this year,” states the report.

Storage owners remain focused on growing rents of existing customers, relying on demand for the service that grew significantly in 2021.

Secondary markets experiencing rapid population growth continue to lead in street rate gains. For 10×10 non-climate-controlled (NON CC) units, eight of the top 31 metros had street rate increases greater than five percent in August, while rates decreased in seven metros.

Year-over-year street rate growth continues to decelerate. Nationwide, the overall average street rate, which includes all unit sizes and types, grew 1.4 percent year-over-year in August, a 130-basis-point drop from July’s annual growth rate and a 280-basis-point drop from the rate in June.

Learn more about the state of the self storage market nationwide.

Yardi Matrix tracks a total of 4,203 self storage properties nationwide in various stages of development — including 1,594 planned, 760 under construction and 515 prospective properties. Matrix also maintains operational profiles for 28,719 completed self storage facilities across the United States, bringing the total data set to 32,922.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post Self Storage Rents Slow Despite Continued Demand, Yardi Matrix Reports appeared first on Yardi Matrix Blog.

The question now is, how long is this exceptional performance expected to continue? With the fall 2022 term just underway, this program will review how university markets ended the preleasing season with occupancy and rent growth, with an outlook for what’s to come in the short- and long-term. Join panel of experts as they offer key insights affecting the student housing industry.

Topics will include:

• A look at early enrollment indications for the fall 2022 term and other current trends impacting the off-campus dedicated student housing industry
• A review of key fundamentals at the Yardi 200 and university level, including preleasing, rent growth, supply growth and transactions
• Expert predictions about the longevity of the solid performance of the industry and a discussion of potential headwinds coming
• A long-term outlook for the industry, including Yardi Matrix rent, occupancy, supply and enrollment forecasts

REGISTER TODAY

The session was led by:

Jeff Adler
Vice President, Yardi Matrix
jeff.adler@yardi.com

Ron Brock
Industry Principal, Yardi Matrix
jr.brock@yardi.com

The post Student Housing National Outlook Webinar – Fall 2022 appeared first on Yardi Matrix Blog.

SANTA BARBARA, Calif., Sept. 8, 2022 – Average apartment asking rents decreased for the first time in 2022, dropping by $1 to $1,718, according to the latest Yardi® Matrix Multifamily Report.

The anticipated slowdown is no surprise to analysts, who observe in the new report that the U.S. economy is starting to feel the effects of higher interest rates, while migration is slowing affordability is affecting high-growth metros.

“Rent growth tends to slow in the fall, but this year comes at the tail end of the unprecedented increases. The deceleration in August was strongest in many of the markets that have had the most growth over the past two years, a sign that affordability is becoming an issue,” states the report. It’s possible that deceleration could continue for the remainder of the year.

Markets that have had the most growth over the past two years are seeing the strongest signs of affordability issues. Year-over-year rent growth dropped 7 to 8 percentage points over the last two months in Orlando (16.9 percent in August), Miami (16.7 percent) and Tampa (14 percent).

The cooling housing market is a positive demand driver for multifamily, but inflation and a slowing job market are eroding residents’ ability to pay. Rent declines were concentrated in high-end Life- style properties. Lifestyle rent growth was negative in 21 of Yardi Matrix’s Top 30 metros.

Overall, year-over-year growth decelerated by 170 basis points to 10.9 percent. Nationally, asking rents are up 6.6 percent year-to-date, higher than any year prior to 2021. The U.S. occupancy rate was steady at 96 percent.

The single-family sector continues to mirror the activity in multifamily. The average single-family asking rent decreased by $2 in August to $2,090, while year-over-year growth dropped by 170 basis points to 9.5 percent.

Learn more about the changing outlook for multifamily in the latest multifamily report.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post National Average Asking Rents Stopped Growing in August, According to Yardi Matrix appeared first on Yardi Matrix Blog.

SANTA BARBARA, Calif., Sept. 08, 2022 – Consumer purchases of recreational vehicles and boats are spurring strong demand for storage facilities, creating investment opportunities within this niche asset class, according to a new research bulletin from Yardi® Matrix.

The bulletin outlines factors driving demand for RV and boat storage. Most notable among them are a record number of acquisitions. In 2021, 571,000 RV registrations and 313,000 boat sales were recorded, driven largely by consumers’ desire for outdoor vacation activities during the pandemic and a shortage of space in residential areas to store the vehicles.

RV/boat storage facility deliveries are expected to rise to the highest levels in nearly two decades in 2022, the bulletin reports. However, this growth, constrained by the limited number of developers and suitable facilities, zoning issues and other factors, is not fully meeting demand.

Sixty-six property sales valued at $284.5 million took place in 2021. With the average price per acre already 40% higher in 2022 over last year, this year “will likely be another record year for RV/boat storage transaction volume,” the bulletin says.

Although vehicle sales could be slowed by rising interest rates, supply chain snags and a slowing economy, “growth in the total number of RVs and boats to be delivered over the next five to 10 years is likely to be solid and increase demand for storage,” the bulletin says.

Read the research bulletin to learn more about the RV/boat market’s current state and prospects and why this subsector of the self storage vertical presents an opportunity for investors.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, self storage, office and industrial property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.    

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post RV/Boat Storage Market Poised for Further Growth, Yardi Matrix Reports appeared first on Yardi Matrix Blog.

On a market level, rate growth is tempering across major and tertiary markets. Street rate performance in markets appears to be largely driven by population growth rather than the level of storage penetration in a market. Especially as rates remain the strongest in high-growth markets in the South, Southeast and Southwest, despite high levels of available storage supply.

This solid rate growth and healthy demand has supported robust new construction starts for the self storage industry. As a result, the new-supply pipeline has been steadily increasing since the start of the second quarter of 2022, renewing some fears of oversupply in select markets. However, rising costs and extended construction timelines will likely moderate the pace of new supply over the coming years.

RV and boat storage facilities may only be a small niche equal to roughly 3-5% of the total U.S. self storage industry, but with business booming recently, this niche is starting to draw a lot of attention. Demand for this distinctive storage type is surging due to the increasing use of RVs and boats, as well as the growing efforts of local organizations to prohibit their storage in residential areas. As the sector grows, it continues to attract investor interest, seeing record-high transaction activity in 2021. However, due to due to unique considerations and constraints in developing RV and boat storage facilities, the amount of new supply being delivered hasn’t met recent demand. Overall, the RV and boat storage niche appears to be in the beginning stages of growth, so it will be interesting to see how it evolves in coming years.

Get the full Yardi Matrix webinar recording and presentation materials.

The post [Webinar Recap] Self Storage National Outlook – Fall 2022 appeared first on Yardi Matrix Blog.

SANTA BARBARA, Calif., July 18, 2022 – Demand for self storage units is steady, so street rates remained at record highs last month, according to the latest National Self Storage Report from Yardi® Matrix.

Average U.S. street rates for 10X10 non-climate-controlled (NON CC) units remained at $132 in June, matching the all-time high set last month. Climate controlled (CC) 10×10 units were an average of $151, also an all time high.

The latest rates signal an expected slowdown in growth. Nationwide, the overall average street rate, which includes all unit sizes and types, grew 2.1 percent year-over-year in July, a 210-basis-point drop compared to June’s annual rate growth.

“With strong demand and street rates at all-time highs, storage operators have more opportunity to increase rents for existing customers and replace rate-sensitive existing customers with new customers at the elevated street rates,” say Matrix analysts.

During recent second-quarter earnings calls, several REIT executives said they expect seasonality to return in 2022’s second half after several quarters of unusually low move-outs. The number of customers moving out is likely to normalize later this year.

While street rates are shrinking in some areas of the country, growth remains the healthiest in the Southeast. For 10×10 NON CC units, nine of the top 31 metros had street rate increases greater than five percent in July, while rates decreased in four. For 10×10 CC units, only two of the top 31 had five percent or more growth, while eight experienced negative growth.

Learn more about the state of the self storage market nationwide and sign up for an Aug. 31 webinar on the vertical, where Matrix experts will go in-depth on storage trends and the economy overall.

Yardi Matrix tracks a total of 4,156 self storage properties nationwide in various stages of development — including 1,555 planned, 762 under construction and 514 prospective properties. Matrix also maintains operational profiles for 28,531 completed self storage facilities across the United States, bringing the total data set to 32,687.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post Self Storage Rents Hold at Record Highs, Yardi Matrix Reports appeared first on Yardi Matrix Blog.

Join our Yardi Matrix experts as they offer key insights into the self storage market.

Topics will include:

• National market overview of self storage fundamentals
• Analysis of street rate performance for different markets and unit sizes
• Overview of RV and boat storage performance
• An in-depth look at development activity, including a forecast of new supply for the next several years

Get the full Yardi Matrix webinar recording and presentation materials.

The session was led by:

Jeff Adler
Vice President, Yardi Matrix
jeff.adler@yardi.com

Paul Fiorilla
Director of Research
paul.fiorilla@yardi.com

The post Self Storage National Outlook Webinar – Fall 2022 appeared first on Yardi Matrix Blog.

SANTA BARBARA, Calif., Aug. 09, 2022 – Average apartment rents increased by $10 last month, their lowest rate since January, according to the latest Yardi® Matrix Multifamily Report. The average rent in the U.S. was a record $1,717 in July.

Year-over-year growth decelerated by 110 basis points to 12.6 percent, 260 basis points off the February peak of 15.2 percent.

“Rent growth remains lofty just about everywhere by historical standards, but the rate of increase in high-growth metros is falling,” say Matrix analysts. For example, year- over-year rent growth in top-performing Orlando (20.2 percent in July), Miami (19.5 percent) and Tampa (17.4 percent) is still high but dropped three to four percentage points in each market compared to the previous month.

Demand and rent growth remained strong throughout the country, with rent growth rising at least 10 percent year-over-year in 24 of Yardi Matrix’s top 30 metros. In a sign of stability for the sector, national occupancy rates were 96 percent for the third month in a row.

The average single-family unit asking rent increased by $7 in July to $2,092, while year-over-year growth dropped by 60 basis points to 11.2 percent.

“The moderating rent growth may be a product of an inevitable return to the mean, coincidental to the suddenly slowing economy, or some combination of the two,” states the report. Record rent growth in 2021 was driven by record-high absorption of 580,000 units in 2021, per Yardi Matrix. Absorption is roughly half that pace in 2022, in line with a normal year.

Learn more in the latest multifamily report.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post Multifamily Rent Increases Decelerate, According to Yardi Matrix appeared first on Yardi Matrix Blog.

SANTA BARBARA, Calif., August 1, 2022 – Institutional investment in rental single family rental (SFR) homes is on the rise and expected to grow dramatically over the next eight years, according to a new bulletin on the sector released today by Yardi® Matrix. However, rising interest rates are forcing investors to reassess the most effective strategies for growing portfolios and may contribute to lower near-term returns.

Institutions have committed more than $60 billion to buying single-family homes over the past year, according to various corporate announcements and news articles.

Recent research by MetLife Investment Management (MIM) estimated that institutions own some 700,000 single-family rentals in 2022, about 5 percent of the 14 million SFRs nationally. MIM forecasts that by 2030, institutions will increase SFR holdings to 7.6 million homes, more than 40 percent of all SFRs. Institutional acquisitions of SFRs in communities of 50 or more units soared in 2021 to $2.5 billion, according to Yardi Matrix.

Institutional portfolio growth is currently focused on build-to-rent (BTR) projects or acquiring portfolios from smaller owners. BTRs are on track to deliver far more units in 2022 than in any previous year. More than 25,000 units are under construction and nearly 4,300 were already delivered in the first half of 2022, meaning the industry will easily surpass 2021’s record-high 7,705 deliveries.

“Rising home and mortgage costs in the second quarter of 2022 increased the cost of capital for institutional buyers, so the segment’s growth is likely to slow and returns will moderate. Even so, the industry benefits from strong long-term demand drivers and the explosive growth in institutional capital,” say Matrix analysts.

Get more insight into investment activity, development and rent trends for the SFR/BTR sector in the new Yardi Matrix bulletin.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. With 8,000 employees, Yardi is working with our clients globally to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

The post Institutional Investment in Single Family Rentals is on the Rise, Reports Yardi Matrix appeared first on Yardi Matrix Blog.