In May, the multifamily market witnessed a modest rent increase for the fourth consecutive month. The national average asking rent rose by $6 to $1,733, maintaining a year-over-year growth rate of 0.6%. The national occupancy rate held steady at 94.5% for the third month in a row. Notably, none of the major metropolitan areas saw an increase in occupancy rates from the previous year, with the national rate remaining below 95.0% since April of last year. Of the 30 largest metro areas tracked by Matrix, 29 experienced a decline in occupancy rates over the past year. Las Vegas was the only metro area without a change. Occupancy rates in four metros fell below 93.0%: Atlanta (92.4%), Houston (92.5%), Austin (92.9%), and Dallas (92.9%).

Investor sentiment was affected by the expectation that interest rates would decrease in 2024, potentially revitalizing transaction activity. However, the Federal Reserve's sustained high-interest-rate policy, coupled with slower-than-expected inflation decline, led to a stagnation in transactions. As of mid-May, $19.3 billion in multifamily deals had been completed nationwide, representing a 24% decrease from the same period last year and significantly lower than peak years.