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The pandemic-fueled boom for multifamily owners is giving way to a slowdown in demand and rent growth in 2023, according to forecasts

Slowdown Seen in 2023 Forecast for Apartment Rent Growth

The pandemic-fueled boom for multifamily building owners is fading fast as the new year gets underway, the Wall Street Journal reported Monday. The slowdown in leasing demand and rent growth comes after an unprecedented run for the apartment and home rental industry that most housing economists say was shaped by the pandemic. 

Vacancies are piling up, according to the WSJ. The biggest wave of new rental buildings in nearly four decades is expected to cut the pace of rent growth nationally. Some in-demand Sunbelt cities are already experiencing rent declines, in part because many tenants and people searching for apartments feel they can’t devote any more income to rent. 

Rising interest rates, meanwhile, are making rental-property investments less profitable than a year ago. 

“We’re necessarily going to get a bit of a pullback,”  Moody’s, senior economist at Moody’s Analytics, told the WSJ.  

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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