Multifamily hits inflection point — asking rents decline, national vacancy jumps

Apartments.com, a CoStar Group company, released an in-depth report of multifamily rent growth trends for Q3/2022 backed by analyst observations. The report highlights the stark reversal of fortune across the multifamily market, including rent decreases in the largest markets, major slowdowns across the Sun Belt and increased unit deliveries despite wavering demand.

“After four quarters of supply additions outpacing demand, the market is shifting, with national asking rents declining over the last 90 days by 0.4 percent,” said Jay Lybik, national director of multifamily analytics at CoStar Group. “As a whole, the multifamily sector witnessed a disappointing peak leasing season, and with an estimated 110,000 new units set to deliver in fourth quarter, all signs point to rent growth slowing even faster than initially projected by the end of the year.”

Year-over-year remains positive, but rapid slowdown expected

Throughout the third quarte