In 2023, shifts in the economy have been a popular topic in nearly every industry, and the multifamily industry is now seeing its own unique shifts start to alter the landscape of the rental market. Just this month, the U.S. rental market hit a major milestone: national rent growth is finally negative year-over-year, marking a significant deceleration compared to recent years.
At the same time, market supply reached a milestone in August with the vacancy index surpassing the peak rates we saw during the height of the pandemic. A record number of brand-new units — one million in total — are currently under construction and expected to be delivered through the end of 2024.
While we don’t claim to be economists, we do know that when increased supply encounters slower demand, it can present challenges for businesses and bottom lines — and the multifamily industry is no exception. With all of the newly constructed apartment communities set to come online next year, now is the time to start planning your marketing strategies to lease up more effectively in a highly competitive market.
Key Factors To Know
On average across the country, apartments are renting for less today than they did one year ago (Apartment List, July 2023)
In recent years, annual rent growth neared 18 percent nationally and soared to over 40 percent in a handful of popular cities (Apartment List, July 2023)
The industry’s vacancy index has reached 7.3 percent, surpassing the peak rate from the height of the COVID-19 pandemic (Apartment List, July 2023)
The average U.S. multifamily asking rent gained $7 in June, to $1,726, according to Yardi Matrix’s latest survey of 140 markets. The uptick is the equivalent of a 1.8 percent year-over-year rent growth, 74 basis points below the rate registered in May and 3.7% lower than the January rate (Multi-Housing News, July 2023)
How To Maximize Your Leasing Efforts With Social Kapture
Knowing the current state of the industry and what lies ahead in 2024, it’s even more crucial to maximize budgets and turn to comprehensive strategies that will help you lease smarter. That’s where our team comes in to help support our clients as they navigate these challenges.
Here are just a few of our top recommendations that you can implement now to make the most of your services with Social Kapture:
Want to stay top of mind for your prospects? Utilize our Content Request Form in the SK Dashboard on a monthly basis to update any leasing specials and push your available floorplans in your social ads.
Have vacancies? Now is the time to inquire about a budget recommendation for a strong advertising presence.
Getting budget conscious? Stay competitive with your marketing efforts and double down on the ads and platforms that are high-performing to ensure your community is in a good position among your competitors.
Start planning your 2024 marketing strategy today to stand out from the competition next year and beyond. We’re here to help you reach your goals, so connect with us today for custom recommendations!