The multifamily market is set to be tested with challenges coming from the current economic volatility and a decline in consumer confidence, Yardi Matrix says in a March rent-forecast report.
“While rents traditionally get a bounce during the spring leasing season, the market now faces declining consumer confidence and unsettled financial markets.
“Will economic volatility impact the robust demand for apartments?” asks Andrew Semmes, senior research analyst for Yardi Matrix, writing in the report.
“While the rent and occupancy forecasts remain relatively unchanged, the change in U.S. federal administrations has inserted a degree of volatility, which is, for now, difficult to encapsulate in any of our forecasts,” Semmes says.
The report says it remains unclear how the new policies of the administration will play out and how the multifamily market challenges will be due to:
- The threat of increased tariffs
- Impact of government employee reductions under Elon Musk
- Impact of inflation
“We do not anticipate a recession, but we expect a continued chaotic environment between what is said and what is done. It is clear that lower-end consumers are under pressure, as credit-card and auto-loan delinquencies increase and layoffs continue in the technology sector.
“At present, it is unclear how the mix of policies will play themselves out, but the timing will have a meaningful impact on the direction of the U.S. economy,” Semmes writes.
Read the full report from Yardi Matrix here.
About Yardi Matrix
Yardi Matrix researches and reports on multifamily, office and self-storage properties across the United States, serving the needs of a variety of industry professionals. Yardi Matrix Multifamily provides accurate data on 18+ million units, covering more than 90 percent of the U.S. population. Contact the company at (480) 663-1149.
