National Multifamily Market Report - March 2024
California’s multifamily rental market is exhibiting a mix of trends across its major cities, according to the March 2024 Yardi Matrix Multifamily National Report.
In Los Angeles, the multifamily sector saw a minor dip in year-over-year rent, recording a 0.2% decrease. This slight downward trend sets Los Angeles apart from many U.S. metros where rents are on the rise.
San Francisco’s rental market presented a unique case. The city experienced a marginal year-over-year increase in occupancy rates by 0.1%. However, San Francisco also noted the lowest lease renewal rate among the metros surveyed at 53.5%. This indicates a shift in the city’s rental market dynamics, especially in terms of tenant retention.
Contrasting these trends, San Diego’s showed a positive trajectory, aligning with broader national patterns. The city registered a 1.0% growth in year-over-year rent. Additionally, San Diego stood out with a high renewal rent growth of 7.8%, and its rent-to-income ratio was marked at 33.0%.
Rent-to-income ratios in other major Californian cities were also significant. Los Angeles reported a ratio of 32.0%, while San Francisco’s was a bit lower at 29.7%. These figures provide insight into the financial commitment tenants face in these high-demand urban areas.
