16 Nov 18 months of record-breaking rent growth has stalled – Yardi Report
56 of 136 markets forecasted in the United States saw month over month declines. The United States as a whole had month over month average asking rents increase only by one tenth of a percent for September. That is the lowest increase for September since 2017. There have been 18 months of record-breaking average rent increases that have now come to a stop.
This trend shows that we are getting closer to a recession and will likely see ourselves in one by next year. Most markets will finish the year with minimal growth while forecasts for 2023 have been trending downwards. It is predicted that the Fed’s actions will eventually have inflation fall while unemployment rises. But as for now there is a lot of inflationary pressures that have been in play. Until the Fed’s policy works its way deeper into the U.S. economy, it is expected to see an increase in volatility.
Source Credit: Yardi Matrix https://www.yardimatrix.com/publications/download/file/2934-MatrixBulletin-MultifamilyForecast-October2022?utm_source=WhatCountsEmail&utm_medium=Yardi%20Matrix%20Rental%20Market%20-%20Multifamily%20Outlook&utm_campaign=102622_Bulletin_MF_Fall_RentForecast_18179