In Cushman & Wakefield’s latest Multifamily Marketbeat, which analyzes data and trends from Q4 2023, a standout trend includes the 60% gain in net absorption over previous Q4 averages, indicating that the coming year should show signs of “normalcy” in multifamily demand since the pandemic.
Another trend analyzed in the Multifamily Marketbeat is rising occupancy, in large part due to the incredibly high number of units that delivered in 2023 (440,000), causing overall occupancy to dip below 92% at the end of 2023. That said, the stabilized property vacancy rate, at 6%, is just 17 basis points above the historical average going back to 2000.
Lastly, Cushman & Wakefield examines how pricing power is still currently favoring tenants, meaning rent growth has been weaker than in past years, at just 1.6%. While rents didn’t decline, the report notes that the construction pipeline of 800,000 units will likely offer tenants many new options in the coming year.
Download the full Q4 2023 Multifamily Marketbeat here.
