Multifamily market data: 2024 mid-year rental activity report

Featuring the latest data from RentCafe.com and Yardi Matrix

In the ever-evolving real estate landscape, staying informed is not just beneficial — it’s essential. This mid-year rental activity report offers a comprehensive overview of multifamily market data, including trends and insights, from RentCafe.com and Yardi Matrix.

Understanding these patterns is crucial for making informed marketing decisions that align with the current market dynamics. As we reveal the top 30 hottest markets for rental activity, we uncover the economic drivers that make each city unique.

From Minneapolis’s solid economy and attractive amenities to the diverse economies of cities like Richmond, this report is a treasure trove of actionable data. It’s not just about the numbers. It’s about grasping the stories behind them — the why and how that drive rental activities across the nation.

Whether you’re looking to optimize your listings, target the right markets or simply stay ahead of the curve, this article will help. By the end of this read, you’ll have a clearer picture of where the multifamily market stands at this moment in time.

The top 30 hottest markets for rental activity January through June 2024

Top market

Apartments in Minneapolis have been the center of attention on Rentcafe.com in the first half of 2024. The city’s robust rental activity can be attributed to several factors identified by Yardi Matrix:

• Solid economy: Minneapolis boasts a steady job growth and an unemployment rate hovering around 3% as of May, significantly lower than the national average of 4.1%.
• Attractive amenities: With its diverse neighborhoods, extensive public transportation, cultural attractions and easy access to outdoor recreation, Minneapolis is a magnet for renters.
• Affordability: The average rent in Minneapolis is $1,535 a month, which is 15% below the national average. Rent increases have been moderate, with a rise of only 11% since the pandemic (compared to 21% nationally).

The Minneapolis metropolitan area has maintained a consistent occupancy rate of 94.4% over the last 12 months, with only a slight decrease of 0.1%. This is in contrast to the national occupancy rate, which has seen a decline of 0.6% due to a boom in national supply.

Other markets rounding out the top 10

2. Overland Park, Kansas
3. Atlanta, Georgia
4. Cleveland, Ohio
5. Queens, New York
6. Washington, D.C.
7. Tacoma, Washington
8. Orlando, Florida
9. Philadelphia, Pennsylvania
10. Richmond, Virginia

What’s driving the activity in these areas?

Overland Park offers a high quality of life with excellent schools, park and recreational activities. It’s known as a family-friendly environment with safe neighborhoods and a strong job market. The area has seen steady population growth in recent years.

Atlanta has one of the fastest-growing populations in the country lately. The metro has added about 200,000 residents per year in the last four years, which has boosted apartment absorption, particularly in the suburbs. Atlanta added about 72,000 jobs last year, and the unemployment rate is below the national average. The economy is boosted by federal investments in electric vehicles, which has made Georgia a hub of EV production.

Cleveland is very affordable. The average rent there is $1,170 as of June 2024, according to Yardi Matrix. That’s about a third below the national average. Job growth is good, focused on education and healthcare. It’s not been a fast-growing market, but it’s one of the best performing markets in the country right now when it comes to multifamily fundamentals. Rents are up 3.4% year over year, one of the highest growth rates in the U.S.

Queens is a haven for families and young adults who work in New York. Washington D.C. is the home of the federal work force and offers an appealing urban lifestyle. Tacoma is a more affordable and less congested alternative to Seattle. Everyone knows Orlando for its booming retirement villages and Disney, but they may not know that multifamily is booming as well. Philadelphia is the birthplace of the constitution and home to many prominent museums. It’s doing really well right now because of a cluster of universities. Richmond is a rapidly growing market with a diverse economy.

What about cities in the top 11-30 positions?

11. Tulsa, Oklahoma
12. Detroit, Michigan
13. Cincinnati, Ohio
14. North Las Vegas, Nevada
15. Chicago, Illinois
16. Sacramento, California
17. Reno, Nevada
18. Spokane, Washington
19. Peoria, Arizona
20. Louisville, Kentucky
21. Portland, Oregon
22. Winston-Salem, North Carolina
23. San Jose, California
24. Des Moines, Iowa
25. Indianapolis, Indiana
26. Denver, Colorado
27. Knoxville, Tennessee
28. Colorado Springs, Colorado
29. Omaha, Nebraska
30. Little Rock, Arkansas

The West reigns supreme (so far)

Ten of the top 30 most popular cities for renters are in the West, outperforming the Midwest, Northeast and South. Will that hold through the end of the year?

Watch the recording

Get the most from your listings

If you have apartments in these top cities, now might be a good time to check if they are listed on Rentcafe.com to capitalize on the highest renter interactions. Choose the appropriate listing level to meet your occupancy goals, whether to sustain traffic, combat turnover or stand out in competitive markets.

Tips for enhancing your listings

• Include names of major employers and distances to attractions and universities.
• Add a wealth of photos; having 20 or more can increase conversion rates 9x.
• Incorporate virtual tours of floor plans, which 83% of renters find important or very important.

Don’t forget to update your website as well as your listings! While renters might find you because of an ILS search, they’re likely to visit your property website as part of their research. Make sure you have rich content about your neighborhood and what makes it such a great place to live.

About the data: What goes into RentCafe.com rental activity reports?

RentCafe.com rental activity reports typically cover one month of multifamily market data, but this session spans six months. Each one takes into account:

• Renting demand across the 150 largest cities across the U.S.
• Availability of apartments, views, favorites and personalized saved searches
• Listing engagement based on millions of interactions

Connect with the experts

Don’t miss the opportunity to engage with multifamily data experts Nadia Balint of RentCafe.com and Paul Fiorilla of Yardi Matrix. Their insights are invaluable, and connecting with them could help you get a deeper understanding of multifamily market trends.

Follow the links to their LinkedIn profiles to continue the conversation:

• Nadia Balint, senior marketing manager with RentCafe.com
• Paul Fiorilla, associate director research at Yardi Matrix