The multifamily market remains healthy despite weakening fundamentals, capital markets uncertainty, persistent inflation and recession rumors, Berkadia reported in its 2023 Outlook Powerhouse Poll. Apartment construction and deliveries are forecasted to surge in 2023, although the construction industry is still feeling the lingering effects of the pandemic. 

With apartment deliveries expected to reach a 50-year high, 59% of Berkadia mortgage bankers and investment sales advisors predict that multifamily rental demand will outpace new supply in 2023, compared to 80% last year. Deliveries are among the biggest near-term pain points for the apartment sector, although the nation as a whole is still undersupplied. 

“As real estate investors adapt strategies and investment decisions to shifting market conditions, we remain sanguine about multifamily investing, fundamentals and operations,” said Berkadia EVP and head of production Ernie Katai. “While this shift is coupled with headwinds and economic uncertainty, this environment is nothing we haven’t conquered before, and in fact, we believe we are reverting back to national historic averages.”