
Multifamily Fundamentals Begin to Stabilize
U.S. multifamily is beginning to stabilize as vacancy rate expansion and negative absorption ease, CBRE reported. These trends are expected to continue in 2023.
The overall multifamily vacancy rate increased by 30 basis points quarter-over-quarter in the first quarter of 2023 to 4.9%. This was less than the 70-bps increase in Q4 2022 and the 90-bps jump in Q2 2022.
Negative net absorption of 1,900 units in Q1 improved on the previous quarter’s negative 14,000 units, and CBRE expects that absorption will turn positive in Q2.
“The multifamily sector has been in search of stability after experiencing two significant shifts,” said Matt Vance, Americas head of multifamily research for CBRE. “First, the Fed began raising interest rates rapidly and then multifamily fundamentals abruptly changed course as supply growth began to outstrip demand. The good news is that the data over the past six months suggests the market is stabilizing,”
- ◦Economy