How will the economic slowdown affect multi-family rent growth?

Nationwide occupancy remained at 96% for the third straight month, showing solid performance led by gateway and coastal metros. Markets with the highest occupancy gains were San Jose (1.7%), New York (1%), Chicago (1%) and San Francisco (1%).

Yardi analysts said “Occupancy rates have remained strong across the country, but have declined in some high-growth cities due to strong numbers of new deliveries and a slowdown in net travel.” “Absorption rates were particularly strong in San Jose, where occupancy rose to 96.7% and inventory increased 3.2% on new deliveries last year. They are benefiting from high single-family home prices that have made home ownership out of reach for many.”

Read the following: Multifamily Lenders Enjoy Record Year Again – Report

Average single-family rents rose $7 to $2,092 in July, but fell 60 basis points year-over-year to 11.2%.

“Moderate rental growth may be the result of an inevitable return to averages, a sudden economic slowdown, or a combination of both,” the report said. “Record rent growth in 2021 was driven by a record absorption of 580,000 units in 2021, according to the Yardi Matrix. It has “slowed down” and is more consistent with a normal healthy year.

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