The December 2023 National Multifamily Report by Yardi Matrix highlights the highs and lows of the multifamily market in 2023. Despite strong demand, the year-over-year (YOY) growth for rent remained largely unchanged at 0.3 percent—a stark contrast to December 2022's 6.4% YOY increase.
According to Yardi Matrix, 2023's full-year rent growth of 0.3% is the weakest rent performance since the 0.2% increase in 2010 (barring the 2020 pandemic year's 0.1% gain). Negative rent growth is affecting several major metropolitan areas as well, with Austin, Texas, ending the year at a -5.7% growth rate. Other metros such as Orlando, Fla.; Portland, Ore.; Phoenix, Ariz.; and Atlanta, Ga.; all are down by at least 3% year-over-year.
Strong job market
Despite the multifamily market ending 2023 on a downswing, conditions may not be as weak as they appear. A strong job market continues to drive demand and shows signs of holding up following the Federal Reserve's rate hikes.
Also aiding in demand is net immigration, which has increased by more than one million annually, according to the report.
Occupancy rates
The national occupancy rate left December 2023 at 94.8 percent, unchanged from the previous month. Rates were either unchanged or down YOY in all but five markets: Chicago, Ill. (+0.2% YOY), Seattle, Wash. (+0.2% YOY), Denver, Colo. (+0.1% YOY), Washington, D.C. (+0.1% YOY), and the Twin Cities (+0.1% YOY).
Atlanta had the largest decline of the year, down 1.3 percent.
Overall outlook for multifamily housing in 2024
- Expenses, income, deliveries, and interest rates pose key challenges for the multifamily industry this year
- Though the market is expected to deliver over 500,000 units this year, there is a dramatic decrease in starts
- Recent interest rate declines alleviate potential distress for multifamily owners, but long-term stability remains uncertain
Related Stories
Multifamily Housing | Feb 21, 2023
Multifamily housing investors favoring properties in the Sun Belt
Multifamily housing investors are gravitating toward Sun Belt markets with strong job and population growth, according to new research from Yardi Matrix. Despite a sharp second-half slowdown, last year’s nationwide $187 billion transaction volume was the second-highest annual total ever.
Multifamily Housing | Feb 21, 2023
New multifamily housing and mixed-use buildings in Portland, Ore., must be ready for electric vehicle charging
The Portland, Ore., City Council recently voted unanimously to require all new residential and mixed-use buildings to be ready for electric vehicle charging. The move amends Portland’s zoning laws to require all new multi-dwelling and mixed-use development of five or more units with onsite parking to provide electric vehicle charging infrastructure.
Reconstruction & Renovation | Feb 16, 2023
Insights from over 300 potential office-to-residential conversions
Research from Gensler finds that, surprisingly, the features that result in an unpleasant office often make for a superlative multifamily product.
Multifamily Housing | Feb 16, 2023
Coastal Construction Group establishes an attainable multifamily housing division
Coastal Construction Group, one of the largest privately held construction companies in the Southeast, has announced a new division within their multifamily sector that will focus on the need for attainable housing in South Florida.
High-rise Construction | Feb 15, 2023
Bjarke Ingels' 'leaning towers' concept wins Qianhai Prisma Towers design competition
A pair of sloped high-rises—a 300-meter residential tower and a 250-meter office tower—highlight the Qianhai Prisma Towers development in Qianhai, Shenzhen, China. BIG recently won the design competition for the project.
Senior Living Design | Feb 15, 2023
Passive House affordable senior housing project opens in Boston
Work on Phase Three C of The Anne M. Lynch Homes at Old Colony, a 55-apartment midrise building in Boston that stands out for its use of Passive House design principles, was recently completed. Designed by The Architectural Team (TAT), the four-story structure was informed throughout by Passive House principles and standards.
Multifamily Housing | Feb 11, 2023
8 Gold and Platinum multifamily projects from the NAHB's BALA Awards
This year's top BALA multifamily winners showcase leading design trends, judged by eight industry professionals from across the country.
Multifamily Housing | Feb 10, 2023
Dallas to get a 19-story, 351-unit residential high-rise
In Dallas, work has begun on a new multifamily high-rise called The Oliver. The 19-story, 351-unit apartment building will be located within The Central, a 27-acre mixed-use development near the Knox/Henderson neighborhood north of downtown Dallas.
Giants 400 | Feb 9, 2023
New Giants 400 download: Get the complete at-a-glance 2022 Giants 400 rankings in Excel
See how your architecture, engineering, or construction firm stacks up against the nation's AEC Giants. For more than 45 years, the editors of Building Design+Construction have surveyed the largest AEC firms in the U.S./Canada to create the annual Giants 400 report. This year, a record 519 firms participated in the Giants 400 report. The final report includes 137 rankings across 25 building sectors and specialty categories.
Multifamily Housing | Feb 7, 2023
Multifamily housing rents flat in January, developers remain optimistic
Multifamily rents were flat in January 2023 as a strong jobs report indicated that fears of a significant economic recession may be overblown. U.S. asking rents averaged $1,701, unchanged from the prior month, according to the latest Yardi Matrix National Multifamily Report.
