Progress Towards Stabilization of the US Multifamily Market

The U.S. multifamily market showed signs of stabilization in the second quarter of 2023, with a rebound in absorption and modest uptick in vacancy, according to CBRE’s latest research. Rents increased 2.6% year-over-year, which is consistent with the pre-pandemic five-year average growth rate. The multifamily vacancy rate rose by 10 basis points quarter-over-quarter to 5%, slower than the 30 basis point increase seen during Q1 2023 and 70 basis point rise recorded for Q4 2022; however net absorption escalated to 70,200 units – its highest since Q1 2022 – indicating a recovery in renter demand across most markets nationwide.
Kelli Carhart – leader of multifamily capital markets at CBRE – commented: “Despite a heavy supply pipeline we are seeing renter demand remain solid as vacancy and rent growth stabilize… With inflation easing we anticipate increased investment activity during H2 2023 despite capital market volatility”