Rents Peaking

I think we’re at the top. The article from Bisnow states that while multifamily rents have slipped some since record highs in late summer 2022, the median asking rent nationally remains above $2,000. Per the article, median asking rents show $2,029 in June-2023, $1,995 in May-2023, and $2,019 in June-2022. The highwater mark was in August-2022 at $2,053. Expressed as percentages, rents gained .5% YOY in June but were down YOY .6% in May. So while rents remain high, owners and operators are now offering more concessions and/or discounts to the litany of add-on fees most charge above and beyond the monthly rental rate. I think shrinking rental rates are not far behind. Keep an eye on this space. And keep an eye on vacancy. In Salt Lake City, where 20,000 new units are coming on line in the next 12 – 24 months, today we may find ourselves at the zenith of both rental rates and occupancy levels.
Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.
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