Multifamily Investment Guide

In Q2 2023, the multifamily housing market continued the trend of supply exceeding demand for the seventh consecutive quarter. Although there was a rebound in net absorption with 42,000 units absorbed, the delivery of 109,000 new units led to a slowdown in national rent growth from 3.8 percent to 1.7 percent. Rent growth varied across regions, with the Midwest and Northeast faring better than Sunbelt markets like Las Vegas and Phoenix, which experienced significant rent declines. The national vacancy rate increased to 6.7 percent from a record low of 4.7 percent in 2021 and is projected to reach the mid-seven percent range by the end of the year. Factors such as elevated inflation, previous rent increases, and economic uncertainty have contributed to a tempering of multifamily housing demand.  In this guide, Matthews™ takes a look at U.S. multifamily data, including rent growth, vacancy rates, and rents across major markets across the nation. The guide also states the top-performing multifamily markets and how changing consumer preferences are impacting the sector.