Q4 2023 U.S. multifamily market overview

Over 1 million new units have delivered across the top U.S. markets since 2020, increasing the multifamily supply by almost 15%. The increased supply has slowed overall rent growth, as half of U.S. major markets have seen effective rents decline over the last 12 months. Slowed rent growth coupled with increased interest rates led to a significant drop in sales volumes, reaching the lowest rate since 2014.

Increase in multifamily inventory since 2020

Occupancy has improved across class A assets while the class B and C markets have experienced negative absorption for eight consecutive quarters.


Top U.S. markets that saw effective rents decline in 2023

Effective rents among class A assets have declined by -0.7%, compared to +0.1% for class B and +1.9% for class C.


Decline in average sale pricing over the last 12 months

The 10-year treasury rate dropped to 3.9% in December 2022, its lowest level since July 2023, potentially an indication of the Fed cutting rates in 2024.

For more information, contact:

  • Regional Manager, Insight
  • Research

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