Multifamily rents have soared in recent years, but as the economy shows signs of downturn, it remains unclear how much higher rents will go in the future. According to Derek Graham, principal and founder of private real estate investment firm Odyssey Properties Group, the outlook for multifamily real estate overall remains strong, notwithstanding the prospect of recession.

“As we emerge out of a record-breaking past two years for multifamily real estate performance, there is skepticism on the economic horizon,” says Graham. “Year-end rent growth for 2022 remains considerably higher than the long-term average, yet the majority of markets have already peaked and will experience little to no additional growth through the end of 2022.”

Graham notes that if, as many experts predict, the United States experiences a moderate recession throughout 2023 and 2024, that would likely result in a mild decrease in multifamily occupancy and overall rents evening out. “Alth