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
Giants 400 | Dec 20, 2023
Top 40 Student Housing Construction Firms for 2023
Findorff, Juneau Construction, JE Dunn Construction, and Weitz Company top BD+C's ranking of the nation's largest student housing facility general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Dec 20, 2023
Top 30 Student Housing Engineering Firms for 2023
Kimley-Horn, Wiss, Janney, Elstner Associates, KPFF Consulting Engineers, and Olsson head BD+C's ranking of the nation's largest student housing facility engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Dec 20, 2023
Top 90 Student Housing Architecture Firms for 2023
Niles Bolton Associates, Solomon Cordwell Buenz, BKV Group, and Humphreys and Partners Architects top BD+C's ranking of the nation's largest student housing facility architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
MFPRO+ News | Dec 18, 2023
Berkeley, Calif., raises building height limits in downtown area
Facing a severe housing shortage, the City of Berkeley, Calif., increased the height limits on residential buildings to 12 stories in the area close to the University of California campus.
Sponsored | Multifamily Housing | Dec 13, 2023
Mind the Gap
Incorporating temporary expansion joints on larger construction projects can help avoid serious consequences. Here's why and how.
Giants 400 | Dec 12, 2023
Top 35 Military Facility Construction Firms for 2023
Hensel Phelps, DPR Construction, Walsh Group, and Whiting-Turner top BD+C's ranking of the nation's largest military facility general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Dec 12, 2023
Top 50 Military Facility Engineering Firms for 2023
Jacobs, Burns & McDonnell, WSP, and AECOM head BD+C's ranking of the nation's largest military facility engineering and engineering/architecture (EA) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Giants 400 | Dec 12, 2023
Top 40 Military Facility Architecture Firms for 2023
Michael Baker International, HDR, Whitman, Requardt & Associates, and Stantec top BD+C's ranking of the nation's largest military facility architecture and architecture/engineering (AE) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
Codes and Standards | Dec 11, 2023
Washington state tries new approach to phase out fossil fuels in new construction
After pausing a heat pump mandate earlier this year after a federal court overturned Berkeley, Calif.’s ban on gas appliances in new buildings, Washington state enacted a new code provision that seems poised to achieve the same goal.
MFPRO+ News | Dec 11, 2023
U.S. poorly prepared to house growing number of older adults
The U.S. is ill-prepared to provide adequate housing for the growing ranks of older people, according to a report from Harvard University’s Joint Center for Housing Studies. Over the next decade, the U.S. population older than 75 will increase by 45%, growing from 17 million to nearly 25 million, with many expected to struggle financially.
