FraddieMac - Multifamily Midyear Outlook, 2023

The 2023 Midyear Multifamily Outlook report provides insights on the current state of the multifamily rental market. The report covers trends in property prices, interest rates, employment growth, vacancy rates, and gross income growth. It also includes projections for the future of the market, including the likelihood of a recession in 2024 and the potential risks that could contribute to a downturn. The report notes that the strength of the job market makes it unlikely that a recession will occur in 2023, but that the biggest risk for a recession in 2024 comes from a misstep by the Federal Reserve Board. Other significant risk factors include an expansion of the Ukraine-Russia war, rising tensions with China, and a bank credit crunch. The report also highlights the long-term tailwinds that make multifamily a favored asset class, including demographic shifts, urbanization, and a growing preference for renting over homeownership. The report concludes with contact information for the Freddie Mac Multifamily Research team and a disclaimer that the information provided does not constitute investment advice and should not be relied on as such.