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
| Mar 15, 2013
7 most endangered buildings in Chicago
The Chicago Preservation Society released its annual list of the buildings at high risk for demolition.
| Mar 14, 2013
25 cities with the most Energy Star certified buildings
Los Angeles, Washington, D.C., and Chicago top EPA's list of the U.S. cities with the greatest number of Energy Star certified buildings in 2012.
Building Enclosure Systems | Mar 13, 2013
5 novel architectural applications for metal mesh screen systems
From folding façades to colorful LED displays, these fantastical projects show off the architectural possibilities of wire mesh and perforated metal panel technology.
| Mar 6, 2013
Dual towers designed by SHoP create new affordable housing in NYC
With the construction of Hunters Point South, New York City will get its first large new housing development for middle-class families in more than 30 years. Related Companies is partnering with the nonprofit Phipps Houses in the project, designed by SHoP Architects with Ismael Leyva Architects.
| Mar 6, 2013
German demonstration building features algae-powered façade
Exterior of carbon-neutral demonstration building consists of hollow glass panels containing micro-algae "farms."
| Mar 4, 2013
Gehry unveils design for Santa Monica hotel-condo tower
If all goes as planned, Frank Gehry will design the first building in his hometown in some 25 years.
| Mar 3, 2013
Hines acquires Archstone's interest in $700 million CityCenterDC project
The Washington D.C. office of Hines, the international real estate firm, announced the acquisition of the ownership interest of their partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
| Mar 1, 2013
China mega developer enters U.S. market
China Vanke Co., Ltd., is making its debut in the U.S. property market with a joint venture high-rise condominium project at 201 Folsom St. in San Francisco, according to CoStar's Randyl Drummer.
| Feb 28, 2013
Novel multifamily solutions to be presented at New York Modular Construction Summit
The New York Modular Construction Summit will be co-hosted by the Modular Building Institute and Pratt Institute School of Architecture on May 16, 2013, in Brooklyn, N.Y.
| Feb 28, 2013
Lend Lease builds world's tallest timber apartment building
Construction giant Lend Lease recently put the finishing touches on Forté, a 10-story apartment complex in Melbourne, Australia's Victoria Harbour that was built entirely with cross laminated timber (CTL) technology.