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Renter Demand Remains Healthy for U.S. Multifamily
The U.S. multifamily market continued to see healthy renter demand in the third quarter of 2023, although rent growth slowed from previous highs, according to CBRE’s latest research.
The multifamily vacancy rate inched up by 10 basis points quarter-over-quarter to 5.1% in Q3, a slower increase than 30 bps in Q1 and matching the 10-bp rise in Q2. Net absorption climbed to 82,100 units in Q3 2023, indicating a return to more typical seasonal demand patterns disrupted by the pandemic. The average monthly net effective rent growth reached 0.7% in Q3, below pre-pandemic norms.
“Renter demand remained healthy through the third quarter, largely offsetting record new construction,” said Kelli Carhart, leader of Multifamily Capital Markets for CBRE. “We anticipate investment activity to pick up mid-2024, driven by an end to the Fed’s rate hiking cycle and improved capital markets conditions, as well as loan maturities that will create transaction opportunities.”
- ◦Lease
