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 | Jul 20, 2020
Abandoned 15-story high-rise becomes mixed-use luxury apartment building
Kimmich Smith Architecture designed the project.
Coronavirus | Jul 20, 2020
Student housing amid the pandemic, infection control in buildings, and future airport design on "The Weekly"
Experts from Core Spaces, Bala Consulting Engineers, and Populous were interviewed in the July 23 streaming program from Horizon TV.
Mixed-Use | Jul 14, 2020
Apartments and condos occupy what was once a five-story car dealership
Wisznia | Architecture+Development designed, developed, and is managing the project.
Multifamily Housing | Jul 7, 2020
AEMSEN develops concept for sustainable urban living
The concept has been created for the redevelopment of the lots on the Barbizonlaan in Capelle aan den IJssel.
Multifamily Housing | Jun 29, 2020
New affordable housing development comes to the Bay Area
The two phase project will provide 100 affordable units total.
Multifamily Housing | Jun 23, 2020
11 tips on how to install EV charging stations in multifamily housing
A top sustainability expert gives the whys and wherefores of installing electric vehicle charging posts in your next multifamily enterprise.
Coronavirus | Jun 19, 2020
Experts address COVID-19's impact on nursing homes and schools on The Weekly
The June 18 episode of BD+C's "The Weekly" is available for viewing on demand.
Senior Living Design | Jun 11, 2020
COVID-19: An "outdoor living room" for senior living residents to safely visit with their families
Aegis Living creates a plexiglass-wrapped outdoor space for residents to sit while visiting with family members.
Multifamily Housing | Jun 10, 2020
60-unit independent senior living facility completes in Crystal Lake, Ill.
UrbanWorks designed the project.
Multifamily Housing | Jun 9, 2020
Two 56-story prefabricated towers will make up Singapore’s newest residential district
ADDP Architects designed the project.