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 | Sep 16, 2020
8 (more) noteworthy multifamily projects to debut in 2020
An office-to-apartment conversion in Clearwater, Fla., and a modular affordable housing community in Portland, Ore., highlight the latest multifamily developments to open this year.
Multifamily Housing | Sep 14, 2020
McShane Construction begins work on Gilbert, Ariz., multifamily development
Continental Properties is the project owner.
Multifamily Housing | Sep 10, 2020
COVID-19: How are you doing?
Multifamily seems to be one sector in the construction industry that’s holding its own during the pandemic.
Multifamily Housing | Sep 10, 2020
EV charging webinar to feature experts from Bozzuto, Irvine Company, and RCLCO - Wed., 9-16
EV charging webinar (9/16) to feature Bozzuto Development, The Irvine Company, RCLCO, and ChargePoint
Multifamily Housing | Sep 2, 2020
8 noteworthy multifamily projects to debut in 2020
Brooklyn's latest mega-development, Denizen Bushwick, and Related California’s apartment tower in San Francisco are among the notable multifamily projects to debut in the first half of 2020.
Multifamily Housing | Sep 2, 2020
New affordable housing in the Bronx is designed for both seniors and teens
Body Lawson Associates designed the project.
Giants 400 | Aug 28, 2020
2020 Giants 400 Report: Ranking the nation's largest architecture, engineering, and construction firms
The 2020 Giants 400 Report features more than 130 rankings across 25 building sectors and specialty categories.
Sponsored | | Aug 26, 2020
Healthy air systems have become the new “standard equipment.”
As home buyers demand healthy air systems, builders look to differentiate themselves with a “Healthy Home Builder” designation.
Coronavirus | Aug 25, 2020
Video: 5 building sectors to watch amid COVID-19
RCLCO's Brad Hunter reveals the winners and non-winners of the U.S. real estate market during the coronavirus pandemic.
Multifamily Housing | Aug 24, 2020
Portland’s zoning reform looks to boost the ‘missing middle’ of housing
The city council in Portland, Ore., recently approved the “Residential Infill Project” (RIP), a package of amendments to the city’s zoning code that legalizes up to four homes on nearly any residential lot and sharply limits building sizes.
