The first quarter opens a new chapter for the small multifamily market after a year where the subsector demonstrated its strength and resiliency amid stiff economic headwinds.

The U.S. multifamily market continued to show signs of slowing at the end of 2023, although demand remained robust, with high home prices leading younger generations of higher-income households to choose renting over homeownership.

In the previous two years, Sun Belt markets dominated the top rent growth lists, as pandemic-related re-shuffling settled. In 2023, the list of top markets became much more diverse.

The most recent America’s Rental Housing 2024 report published by Harvard’s Joint Center for Housing Studies (JCHS) takes a detailed look at the state of the rental housing industry.

The state of housing affordability in the U.S. has continued to erode as a growing wave of supply-driven policies offers hope of a solution on the horizon. A closer look at the nation’s overall housing needs underscores the increasing urgency of the situation.

The SFR sector is well-positioned to limit distress through the challenges of the current moment while advancing its standing within the single-family housing market for the long term.

Following a banner year in 2022, the U.S. multifamily market held steady during 2023. Arbor provided research and insights into our markets throughout the year. Here’s a look at our top Arbor research articles from 2023, in case you missed them.

While macroeconomic headwinds remain a constant challenge, the small multifamily sector has demonstrated its ability to bend rather than break.

Multifamily rent growth in the U.S. continued to be distributed throughout a variety of markets, which contrasted with the previous two years when Sun Belt markets dominated the list.

The U.S. multifamily market held steady during the third quarter of 2023, as high mortgage rates and a lack of inventory in the housing market continued to drive rental demand.