U.S. multifamily is beginning to stabilize as vacancy rate expansion and negative absorption ease, according to CBRE’s report. These trends are expected to continue in 2023 with the overall multifamily vacancy rate increasing by 30 basis points quarter-over-quarter in the first quarter of 2023 up to 4.9%. This was less than the 70-bps increase seen in Q4 2022 and 90-bps jump observed during Q2 2022, while negative net absorption of 1,900 units improved on previous quarters’ 14,000 units; CBRE expects that absorption will turn positive again during Q2 this year.
Matt Vance – Americas head of multifamily research for CBRE – commented: “The multifamily sector has been looking for stability after experiencing two significant shifts; initially when Federal Reserve began raising interest rates rapidly followed by a sudden change as supply growth outstripped demand.” He added: “Fortunately data over recent months suggests that market is stabilizing”
