Despite healthy multifamily fundamentals in the first half of the year, doubts remain over how interest rates will affect the economy and capital markets. Yardi Matrix reported Wednesday that demand is still strong due to robust job growth and consumer balance sheets. However, higher mortgage rates are creating headwinds for capital side of the industry.
Yardi Matrix analysts anticipate moderate 2.5% rent growth nationwide this year with gains concentrated in moderately priced “Renter-by-Necessity” units as affordability becomes a growing problem and new deliveries focus on high-end Lifestyle units. New deliveries are expected to be high through 2024 but starts have begun declining due to more expensive debt and fewer banks financing construction projects.
