The Multifamily Book Is Closed On 2022–What’s In Store For 2023?

Multifamily asking rent growth recorded its second best year this century in 2022, though it finished the year on the downside due to weakening demand and robust supply growth that has occupancy rates sinking, Yardi Matrix writes in a year-end report.

“What do we expect in 2023? Despite headwinds, the market has positive drivers,” Yardi Matrix writes.

Highlights of the report:

  • Multifamily rents fell again in December under the strain of weakening demand. U.S. asking rents dropped $4 during the month to $1,715, while year-over-year growth declined by 80 basis points to 6.2 percent, the lowest level since May 2021
  • For the full year in 2022, rents increased by 6.2 percent, the second-highest annual growth this century, only behind 2021’s growth of nearly 15 percent. With the market entering 2023 with a variety of concerns about the economy and affordability, we expect rent growth in 2023 will be closer to historical levels.
  • Deceleration is also hitting the single-family rental market. The average U.S. asking rent dropped $8 in December to $2,083, while the year-over-year increase fell by 100 basis points to 4.8 percent.

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