![]() For the first time since the Covid-19 spring of 2020, average asking rents towards the end of last year saw a decline, according to a new report just released by the real estate market information service Yardi Matrix. Between May of 2020 and November of last year asking rents climbed an average of 21.7%, which the report describes as “the fastest growth on record,” largely fueled by a demand for “more space to accommodate working from home” and accelerated rates of home formations. However, notes the Yardi Matrix document, Special Report: Multifamily Rent Forecast Update, lower rents towards the end of any given year are not unusual, with the “magnitude of the decrease this year (two-tenths of a percent), also not out of the ordinary.” The report additionally predicts that with a possible recession and consequent unemployment in the offing for late this year, “we will likely start to see broad declines or stagnation in average asking rents,” although those declines may not offset what are expected to be spring 2023 increases. Overall, the report is forecasting a 3.1% growth rate in rents for 2023—a figure revised downward from an earlier forecast of 3.5%. Yardi Matrix is based in Santa Barbara, California, but has offices throughout the country and across the globe. By Garry Boulard
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Get stories like these right to your inbox.
|