U.S. Multifamily Market Faces Challenges Ahead

Share Article:

Share on LinkedIn
After two years of stellar growth, rents decelerated in 2023, despite demand still at strong levels thanks to a resilient economy. The 2024 Multifamily Outlook from Yardi® Matrix anticipates a year of challenges, including slowing national rent growth. National rent growth moderated to 0.4 percent year-over-year through November 2023, up from a combined 23.5 percent in 2021 and 2022. Absorption stabilized at 300,000 apartment units in 2023, compared to 600,000 in 2021 and 200,000 in 2022. Yardi Matrix expects that rent growth and occupancy will be heavily tested next year. Of the 1.2 million apartment units under construction at the start of 2024, 510,000 are expected to be delivered by the end of the year, the highest number in decades. We expect demand for multifamily to remain healthy in 2024, but headwinds that include slower job growth, increasing supply, and waning affordability in some markets will keep rent growth restrained again,” state analysts, forecasting a tepid 1.5 percent rent growth nationally. The 2024 forecast calls for Midwest metros to lead rent growth and the Sunbelt and West markets to continue to experience in-migration from the coasts, both by residents and businesses. Sunbelt markets such as Austin, Nashville, Charlotte, and Orlando are already seeing stalling rent growth, and despite robust population and job growth, they boast high levels of new supply, which will further suppress rents. On the investment front, already down by 70 percent year-over-year, multifamily sales will likely remain sluggish in 2024 due to the impact of interest rates and pricing uncertainty. Gain more insights in the latest U.S. Multifamily Outlook from Yardi Matrix. U.S. Multifamily Market Faces Challenges Ahead 1

Source: U.S. Multifamily Market Faces Challenges Ahead

Chicago Multifamily Research

Receive Market Insights

Periodic analysis on rents, pricing, cap rates, and transaction activity across Chicago and key suburban markets.

Subscription Form
No spam. Unsubscribe anytime.

Prev Post

Freddie Mac Outlook for 2024: Moderate Growth

Next Post

What to Watch in 2024: Multifamily Outlook Offers Demand the Chance To Match Supply
img

Randolph Taylor

Randolph Taylor, CCIM, is a Chicago multifamily investment sales broker with over 25 years of experience advising apartment owners on valuations, marketing strategy, and dispositions across the Chicago metro area.

Related posts

Chicago multifamily mortgage rates October 2025 – Agency, Bank, and CMBS trends

Chicago Multifamily Mortgage Rates – October 2025 Market Update | Positive Outlook for Investors

Explore October 2025 Chicago multifamily mortgage rates. See the latest Bank, Agency, and CMBS trends, rate shifts, and investor implications for the Chicago multifamily market.
Continue reading
by Randolph Taylor
Skyline of Chicago apartment market 2025 with reduced housing supply

Chicago Apartment Market 2025: Low Supply, High Demand

Chicago apartment market 2025 sees historic supply lows, rising rents, and fierce investor interest. Find out what this means for the city’s future.
Continue reading
by Randolph Taylor
Bar chart showing annual rent growth in the top 50 U.S. apartment markets as of June 2025, with San Francisco at 5.0% and Chicago at 3.8%, based on CoStar Analytics data.

Chicago Rent Growth Surges in 2025, Ranks #2 in U.S. Market

Chicago rent growth hits 3.8% in 2025, ranking second in the U.S. as supply tightens. Sun Belt cities struggle amid oversupply.
Continue reading
by Randolph Taylor