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.

Continuing late 2022 patterns, year-over-year growth continues to decline, and is now 5.5%, down 70 basis points from December.

The single-family rental (SFR) market remained strong amid ongoing volatility in home sales. The average U.S. asking rent increased $1 in January to $2,070, while the year-over-year increase fell by 85 basis points to 4.2%.

“Participants at the late January National Multifamily Housing Council conference in Las Vegas were generally optimistic about demand fundamentals, but concerns centered around issues such as the wave of proposed rent control measures, increasing expenses and high mortgage rates,” say Matrix analysts.

Matrix Multifamily National Report-January 2023 - average rent

However, the creation of 517,000 new jobs in January is a significant bright spot and help ease fears of an imminent economic downturn. The unemployment rate dropped to 3.4% last month and wage growth shows no signs of spiraling.

“Concerns about a hard-landing recession that would reduce household formation are being alleviated by the continuing stellar performance of the job market,” states the report. Gain more insights by downloading January’s Multifamily Report.

Last year, U.S. multifamily rents increased by 6.4% after peaking near 16% in 2021, according to Yardi Matrix. Those were record figures, the highest seen in a century. The 2023 Yardi Matrix Multifamily Outlook expects that rent growth will be closer to its historical average in 2023.

Matrix Multifamily National Report-January 2023 - top apartment rental markets

Download the January 2023 Yardi Matrix National Multifamily Report

When tapped to create a modern 280-unit residence in downtown Philadelphia, modular builder Volumetric Building Companies used the MagicPak All-in-One™ HVAC system to optimize square footage, expand rooftop amenities, improve the exterior aesthetics and simplify ongoing maintenance – all with 60 percent less onsite HVAC install time than a traditional split system.

Monaco Apartments in Midland, Texas, designed by HEDK Architects, Connect Structural, and Jordan & Skala Engineers, and built by BC Contracting. Photo: Brian Martin, Hommati

Giants 400 | Nov 18, 2021

2021 Multifamily Sector Giants: Top architecture, engineering, and construction firms in the U.S. multifamily building sector

Clark Group, Humphreys and Partners, and Kimley-Horn head BD+C's rankings of the nation's largest multifamily building sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.

EXACOR mgo underlayment panels on multifamily jobsite

How TDK Construction Saves Time and Money with EXACOR™ MgO Panels: Getting in on the Ground Level

Smart decisions made at the start of multifamily design-builds can improve efficiency on the job site, keeping projects on-time and on-budget, so you can make your properties profitable sooner. TDK Construction did just that on a recent luxury apartment project in Tennessee.

Tuck under parking at Fairfax Flats, Nashville, designed by The Bradley Projects.

Multifamily Housing | Nov 14, 2021

How to build better parking for multifamily housing projects

In designing and building multifamily projects, parking determines everything from site suitability to the building’s footprint to revenue optimization.