According to Yardi’s U.S. Multifamily Outlook for Summer 2023, multifamily performance remained strong through mid-year 2023, as the robust job market boosted housing demand and rent growth. Yet the market faces challenges related to the potential economic downturn and rising interest rates that have eroded property values and is likely to lead to an increase in distress.
“Rents resumed their upward climb in the spring as demand remains positive. We expect moderate 2.5% rent growth in 2023, with gains concentrated in Renter-by-Necessity units since affordability is a growing problem and new deliveries are focused on high-end Lifestyle units…”