Third quarter data shows a sharp drop in US apartment demand.
Coming off of a hot streak through most of 2021 and half of 2022, demand for apartments has plunged in the US. Even more surprising was the timing of the slump. The third quarter, July through September, is usually the busiest time for renters to move into apartments. Nationally asking rents have also fallen roughly 0.2%, the first decline since the pandemic. This information follows recent reporting that several major Wall Street banks are predicting a 5% – 15% housing price drop.
The exact cause of the recent drop is not entirely clear. While high rents may be a contributing factor, the decline was seen in all classes of apartments, pointing to other factors. Consumer confidence may be a more significant factor as inflation and uncertain economic conditions are starting to play more heavily on people’s planning. But some predict that if economic conditions remain positive then demand could surge back in spring 2023.
MACo Housing Symposium
The 2022 MACo Housing Symposium will be held at the Prince George’s Sports and Learning Complex – Landover Room (8001 Sheriff Rd, Landover, MD 20785) on October 19th. More information can be found on our website.