The average U.S. asking rent rose $1 to $1,713 in February, up 0.6 percent year-over-year (YoY), while occupancy decreased 60 basis points YoY to 94.5 percent as of January.
Markets in the Northeast and Midwest continued to register rent increases, in contrast to rent contractions in high-supply Sun Belt markets. Of Yardi Matrix’s top 30 metros, 13 posted rent declines, and five were down by three percent or more YoY. Occupancy was positive only in San Francisco, up 0.1 percent.
While rents generally show signs of stability, factors including supply, demand, regional metrics and affordability will determine the market’s 2024 performance. Occupancy is likely to continue to decline, with one million new rental units expected to come online through the end of 2025. Already, heavy deliveries in Sun Belt and Southwest metros have eroded rent growth, with more construction underway.
“While high-demand markets are likely to record weak rent growth over the next year or two, the seeds of a rebound have been planted, as starts are declining and deliveries will drop in 2026 and 2027,” states the report.
Single-family rents declined $2 in February to $2,133, equating to a 1.2 percent year-over-year increase. Single family occupancy remained flat at 96.5 percent in January. High mortgage rates and the scarcity of for-sale assets continue to boost demand.
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, vacant land, industrial, office, retail and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
New research shows 32.5% of homes are at risk of extreme heat, 18.1% are at risk of wind (gusts exceeding 50 mph) and 9% are at risk of poor air quality
Santa Clara, CA – March 13, 2024 (PRNewswire) In the United States, 40.4% of homes, valued at $19.7 trillion, are at severe or extreme risk when it comes to heat, wind and air quality. To help consumers make more informed home buying and selling decisions, Realtor.com® announces the launch of three new climate risk factor scores on its website including Heat Factor™, Wind Factor™, and Air Factor™, with data from First Street, a leading climate technology company with expertise in climate change and the connection of climate risk to financial risk.
“Realtor.com® currently offers users an in-depth look at fire and flood risks. When you consider the percentage of American homes, and the value at risk, against factors like extreme heat, air quality and wind, it was imperative for us to deliver more robust and comprehensive climate risk information to our users,” said Mausam Bhatt, Chief Product and Technology Officer, Realtor.com®. “It’s important for people to fully understand the climate risks that a home faces not only in the present, but in the future, so they can make the most informed decision for one of the biggest purchases and investments they will make in their life.”
Realtor.com® uses First Street’s models that calculate property-level climate risk to present digestible, easy to understand information for its users. Home buyers and sellers can now more fully understand the climate risk associated with a property through maps illustrating exposure to risk factors. They can toggle between factors to see how a particular risk may affect the home’s area in the present and over time, showing current exposure to risks and the expected change for each risk in 15 years, and in 30 years, the length of a typical mortgage.
Across the U.S., certain areas have more value at risk relative to specific climate factors. For example, Miami holds the highest total value of homes at risk for severe or extreme heat (valued at $1,258 billion) and wind (valued at $1,276 billion), while San Francisco has the highest total value at risk of homes at severe or extreme air quality (valued at $1,455 billion). See more market level details here.
More Ways to Evaluate How Climate Risks May Affect Homes
Through Heat Factor™, users can access property-level information that displays a heat risk score between 1-10 (minimal to extreme). They can see how many days the property area experiences a heat index (measured as temperature and humidity) at or above the local definition of a “hot day” and they can see the average high “feels like” temperature in the typical hottest month, today and 30 years into the future. In 2024, approximately 32.5% of homes in the U.S., valued at nearly $13.6 trillion, will face severe or extreme risk of heat exposure.
Wind Factor™ assesses property-level risk measured as the chance a property will be exposed to wind gusts exceeding 50 mph at least once, and scores it from 1-10 (minimal to extreme), today and 30 years into the future. This year, approximately 18.1% of homes in the U.S., valued at nearly $7.7 trillion, will face severe or extreme risk of hurricane wind damage.
Air Factor™ assigns a property-level air risk score from 1-10 (minimal to extreme) and shows consumers the expected change in poor air quality days (Air Quality Index over 100), today and 30 years into the future. Approximately 9.0% of homes in the U.S., valued at nearly $6.6 trillion, will face severe or extreme air quality risk in 2024.
Access to climate risk information including extreme heat, wind, and air quality are now available on for-sale homes listed on Realtor.com® and will be coming soon to rental properties. For more information, visit realtor.com/environmental-risk.
Metros With the Most Share of Home Values at Severe or Extreme Heat Risk*
Metro
Share of Value at Risk
Total Value of Homes at Risk
Austin-Round Rock-Georgetown, TX
100.0 %
$372.7B
Baton Rouge, LA
100.0 %
$67.4B
Cape Coral-Fort Myers, FL
100.0 %
$180.0B
Charleston-NorthCharleston, SC
100.0 %
$155.2B
Deltona-Daytona Beach-Ormond Beach, FL
100.0 %
$101.3B
Houston-The Woodlands-Sugar Land, TX
100.0 %
$732.6B
Jacksonville, FL
100.0 %
$233.7B
Lakeland-Winter Haven, FL
100.0 %
$72.4B
McAllen-Edinburg-Mission, TX
100.0 %
$38.0B
Miami-Fort Lauderdale-Pompano Beach, FL
100.0 %
$1,258.0B
Myrtle Beach-Conway-North Myrtle Beach, SC-NC
100.0 %
$91.6B
New Orleans-Metairie, LA
100.0 %
$106.8B
North Port-Sarasota-Bradenton, FL
100.0 %
$213.7B
Orlando-Kissimmee-Sanford, FL
100.0 %
$356.7B
Palm Bay-Melbourne-Titusville, FL
100.0 %
$97.5B
Tampa-St. Petersburg-Clearwater, FL
100.0 %
$463.6B
Virginia Beach-Norfolk-Newport News, VA-NC
100.0 %
$47.8B
Phoenix-Mesa-Chandler, AZ
99.6 %
$821.3B
Tucson, AZ
99.4 %
$123.9B
San Antonio-New Braunfels, TX
99.2 %
$246.5B
Fresno, CA
99.0 %
$96.1B
Dallas-Fort Worth-Arlington, TX
98.9 %
$939.1B
Las Vegas-Henderson-Paradise, NV
97.3 %
$326.3B
Bakersfield, CA
92.1 %
$70.6B
Richmond, VA
86.8 %
$124.4B
Sacramento-Roseville-Folsom, CA
82.6 %
$339.3B
Augusta-Richmond County, GA-SC
79.7 %
$42.0B
Riverside-San Bernardino-Ontario, CA
77.9 %
$552.1B
Stockton, CA
72.3 %
$72.7B
Baltimore-Columbia-Towson, MD
59.9 %
$195.2B
Washington-Arlington-Alexandria, DC-VA-MD-WV
54.5 %
$525.5B
*For metros having 50%+ of total home values at risk
Metros With the Most Share of Home Values at Severe or Extreme Wind Risk**
Metro
Share of Value at Risk
Total Value of Homes at Risk
Baton Rouge, LA
100.0 %
$67.4B
Cape Coral-Fort Myers, FL
100.0 %
$180.3B
Charleston-North Charleston, SC
100.0 %
$155.7B
Deltona-Daytona Beach-Ormond Beach, FL
100.0 %
$101.6B
Houston-The Woodlands-Sugar Land, TX
100.0 %
$732.6B
Jacksonville, FL
100.0 %
$233.7B
Lakeland-Winter Haven, FL
100.0 %
$72.5B
McAllen-Edinburg-Mission, TX
100.0 %
$38.0B
Miami-Fort Lauderdale-Pompano Beach, FL
100.0 %
$1,276.3B
Myrtle Beach-Conway-North Myrtle Beach, SC-NC
100.0 %
$91.7B
New Orleans-Metairie, LA
100.0 %
$106.8B
North Port-Sarasota-Bradenton, FL
100.0 %
$213.7B
Orlando-Kissimmee-Sanford, FL
100.0 %
$356.8B
Palm Bay-Melbourne-Titusville, FL
100.0 %
$97.5B
Tampa-St.Petersburg-Clearwater, FL
100.0 %
$463.7B
Virginia Beach-Norfolk-Newport News, VA-NC
71.0 %
$33.9B
Austin-Round Rock-Georgetown, TX
51.3 %
$191.2B
Providence-Warwick, RI-MA
51.0 %
$112.3B
**For metros having 50%+ of total home values at risk
Metros With the Most Share of Home Values at Severe or Extreme Air Quality Risk***
Metro
Share of Value at Risk
Total Value of Homes at Risk
Fresno, CA
100.0 %
$97.2B
Sacramento-Roseville-Folsom, CA
100.0 %
$410.6B
Spokane-Spokane Valley, WA
100.0 %
$72.1B
Stockton, CA
100.0 %
$100.6B
Portland-Vancouver-Hillsboro, OR-WA
99.9 %
$400.5B
San Jose-Sunnyvale-Santa Clara, CA
99.9 %
$793.5B
Boise City, ID
99.7 %
$132.4B
Bakersfield, CA
99.4 %
$77.0B
San Francisco-Oakland-Berkeley, CA
98.2 %
$1,455.2B
Seattle-Tacoma-Bellevue, WA
76.8 %
$700.6B
Riverside-San Bernardino-Ontario, CA
61.4 %
$441.2B
***For metros having 50%+ of total home values at risk
About Realtor.com® Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
