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.
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.
Download the January 2023 Yardi Matrix National Multifamily Report
Related Stories
Multifamily Housing | Jun 22, 2021
New apartment community breaks ground in Bethesda
KTGY is designing the project.
Multifamily Housing | Jun 14, 2021
Baccarat Residences Brickell set to rise in Miami
Arquitectonica is designing the project.
Multifamily Housing | Jun 9, 2021
MVE + Partners completes One Museum Square
The luxury apartment community is located in the heart of Los Angeles.
Multifamily Housing | Jun 6, 2021
Multifamily Amenities Survey 2021: Get the latest data on 131 key features for apartments and condos
Download the 2021 Multifamily Amenities Study.
Multifamily Housing | Jun 3, 2021
Student Housing Trends 2021-2022
In this exclusive video interview for HorizonTV, Fred Pierce, CEO of Pierce Education Properties, developer and manager of off-campus student residences, chats with Rob Cassidy, Editor, MULTIFAMILY Design + Construction about student housing during the pandemic and what to expect for on-campus and off-campus housing in Fall 2021 and into 2022.
Multifamily Housing | Jun 2, 2021
San Antonio senior living community benefits from HUD 221(d)(4) funding
Cadence McShane Construction Company has completed the construction of Brookwood Senior Apartments, San Antonio, Texas, for repeat client Mission DG.
Multifamily Housing | May 25, 2021
A new condo tower in Brooklyn lets residents swim in the clouds
Brooklyn Point features an infinity pool that’s nearly 700 feet above the street.
Digital Twin | May 24, 2021
Digital twin’s value propositions for the built environment, explained
Ernst & Young’s white paper makes its cases for the technology’s myriad benefits.
Mixed-Use | May 19, 2021
Salt Lake City mixed-use residential community will feature micro units
KTGY is designing the project.