New Haven Multifamily Market Report

Tighter vacancy fuels rapid rise in rents. Average effective rent growth in New Haven County was at least 300 basis points faster than every major U.S. market over the year ended in March. During the span, the percentage of local units offering concessions fell below 20.0 percent, while the national rate rose above that level. Rollbacks on discounts especially accelerated as Class A vacancy tightened and Class C vacancy rose nominally over the last six months. A net of nearly 900 units were absorbed over the frame — the strongest two-quarter span since mid-2019. A rise in deliveries this year, however, is expected to outstrip demand, stalling the recent vacancy trend. While a higher number of vacant units competing for renters will ultimately weigh on rent growth, the local pace will still double the 1.3 percent mean through the Northeastern region during 2024.