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
Green | May 16, 2016
Development team picked for largest Passive House project in North America
The 24-story curved building would be 70% more efficient than comparable housing in New York City.
Multifamily Housing | May 12, 2016
Micro apartment complex planned for artsy Austin district
Indie Apartments will consist of 139 one- and two-bedroom units at 350- and 520-sf each.
Mixed-Use | May 1, 2016
A man-made lagoon with a Bellagio-like fountain will be the highlight of a mixed-use project outside Dallas
Construction will soon begin on housing, retail, and office spaces.
Senior Living Design | Apr 14, 2016
Creating a home for eldercare using the ‘Green House’ design concept
VOA Associates’ Douglas King offers design considerations in implementing the Green House concept in eldercare for continuing care retirement communities.
Multifamily Housing | Apr 7, 2016
Multifamily and Specialized Housing projects honored in 2016 AIA Housing Awards
A San Francisco low-income mixed-use complex, a Los Angeles homeless veterans housing facility, and a series of student residential buildings at UMass were among the winners.
Multifamily Housing | Mar 10, 2016
Access and energy control app clicks with student housing developers and managers
Ease of installation is one of StratIS’s selling features.
Multifamily Housing | Mar 7, 2016
Multifamily developers face steep costs for violating Fair Housing Act
Designers without previous multifamily experience could overlook key provisions.
High-rise Construction | Mar 3, 2016
HOK’s Hertsmere House will be Western Europe’s tallest residential tower
Recently approved for development, the 67-story building will have more than 900 units.
University Buildings | Feb 29, 2016
4 factors driving the student housing market
In the hyper-competitive higher education sector, colleges and universities view residence halls as extensions of their academic brands, both on and off campus.
Multifamily Housing | Feb 24, 2016
Senior housing sector experiences record-setting year, says CBRE
Senior housing occupancy is at its highest level since 2007, and 2015 was a record year for sales and institutional transactions, according to CBRE.
