Summary
This technical report presents an analysis of the multifamily apartment market conditions as of the third quarter of 2023. It outlines key trends in employment, vacancy rates, supply, demand, and rent growth. The report indicates that job growth is slowing, with an unemployment rate of 3.9 percent. It notes a rise in apartment vacancy rates to 5.9 percent, attributed to high levels of new construction. The report forecasts that vacancy rates may temporarily increase to between 6.0 and 6.5 percent due to elevated completions. It also discusses the expected moderation in rent growth, projecting a range of 1.0 to 2.0 percent for 2024. Additionally, the report highlights that net absorption has increased but remains below new supply levels, indicating a potential oversupply situation in the market. The analysis concludes with observations on cap rates and sales trends, noting a decline in sales activity compared to previous years.
