COSTAR RENTAL MARKET UPDATE: WHERE IS RENT GROWTH DECELERATING THE MOST?
By Jay Lybik, National Director of Multifamily Analytics at CoStar
• The multifamily trend of supply outpacing demand continued for the sixth quarter in a row. It may continue for the remainder of this year. • Net absorption rebounded into positive territory after turning negative at the end of 2022, with 42,000 units absorbed. • The second quarter is on pace to absorb 100,000 units, but new units delivered are projected to hit 145,000 units. • Given demand’s inability to match completions, rent growth has decelerated from 3.8% at the end of 2022 to 1.2% at the end of June.
Absorption Stuck in First Gear
300,000 275.000 250,000 225.000 200.000 175.000 150,000 125.000 100,000
75,000 50,000 25,000 0 -25,000 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023Q1 QTD 6/26/23 Period Source: CoStar, June 2023
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