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.
- ◦Lease
- ◦Development
- ◦Economy