2023 Leasing Season: Multifamily Market Trends You Need to Know

Hey there, multifamily management groups! It’s that time of year again – leasing season is just around the corner, and you need to be prepared. With vacancies on the rise and renter sentiment shifting, it’s more important than ever to understand the multifamily market trends that will shape your success in 2023. Don’t worry, though – we’ve got you covered! As your favorite multifamily marketing agency, Show My Property, we’re here to break it down for you in a fun and informative way.

The Rise of Supply and Vacancies in the Multifamily Industry

Let’s start with the economic trends that are shaping the multifamily market. Supply and vacancies are two biggies to keep an eye on this year. Supply is continuing to grow, with a whopping 500,000 new units expected to be delivered in 2023. That’s the highest number since the 1980s – talk about a blast from the past! And get this – approximately 940,000 new units are currently under construction, a record high not seen since the 1970s. We’re talking prime real estate here, folks. Most notably, 70% of these new units will be 4- or 5-star properties. Thereby, renters entering the market this year will most likely have plenty of new and modern communities to choose from.

But with great supply comes great vacancies. Markets across the country are seeing an increase in vacancies, a trend that’s expected to continue throughout the leasing season and beyond. CoStar forecasts the national vacancy rate by the end of 2023 to be 7.1%, with an even higher rate of 9.8% for 4- and 5-star properties. Don’t panic, though – we’ve got some tips to help you fill those units in no time!

Renter Sentiment: Autonomy is Key

As competition for renters grows, it’s important to understand what renters want. And what they want is autonomy. According to a renter survey conducted by Apartments.com in December 2022, nearly 36% of renters plan to move by summer, and the top reason cited is to find a more affordable unit. During their search, renters are acting quickly and submit leads only when they’re seriously interested. Over 60% of renters who submit leads on Apartments.com only do so for one property. And the average decision time has shortened from 46 days (2020) to 32 days (2022), according to Apartments.com search data.

So, what’s driving renters’ search? Unit-level details and autonomy are key. Nine in 10 renters consider unit pricing, availability, amenities, floor plans, location, and view to be integral to their decision-making process. More than 90% of renters expect multiple ways to tour communities, such as in-person, virtual, and self-guided. It’s important to cater to these expectations and provide renters with the flexibility and control they crave.

Maximize Your Online Exposure

Now that you understand the market trends and renter sentiment, it’s time to get proactive. As Jay Lybik, Director of Multifamily Analytics at CoStar Group, said in a recent analysis of multifamily economic trends, “2023 will challenge owners and property managers with the most difficult market conditions since 2008-09.” That’s why it’s crucial to maximize your exposure and marketing efforts.

And guess what? We know just the place to start. With 25 million monthly network visitors driven in part by a national marketing campaign reaching 95% of U.S. renter households, Apartments.com is your go-to. Additionally, with the support of a multifamily marketing agency like Show My Property, we can supply you with powerful marketing solutions.

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