“Shifting supply and demand dynamics in 2023 will likely give renters the upper hand as they look to lease new units, tempering rent growth after a historic run-up in prices during the course of the pandemic,” reports Lynn Pollack in Globe St.
Despite record new inventory of multifamily units, experts expect that fewer renters will be trying to move, giving them more bargaining power, Pollack explains. “We’re on track to end 2022 with the weakest net apartment demand since 2009. Low consumer confidence and weak household formation tells us Americans are in ‘wait and see’ mode,” says Jay Parsons, Head of Economics and Industry Principals at RealPage.
According to ApartmentList, “This shift already appears to be underway, as evidenced by the recent declines in the national median rent. The factors that have driven that dip – namely, cooling demand colliding with rising inventory – are likely to persist into next year.” This is good news for renter households, particularly as pandemic-era eviction protection and rental assistance programs come to an end.