The Multi-family Market
The multi-family market, more than any other, has been driven by the money funneled into the economy during the course of the pandemic. The shear level of money provided to renters through various pandemic programs combined with the broader economic stimulation led to some of the largest multi-family rent increases in our history. Oklahoma City has historically seen slow but steady rent growth; two to three percent annually. You could always count on it. In 2021, rent increased 12 percent. The increase was cut in half but still historically high in 2022, at 6 percent, with most of this moderation coming in the second half of the year. Clearly this wasn’t sustainable. What isn’t clear is where do we go from here.
You can make the argument that there is a lot of good news out there for the multi-family market – people have jobs if they want them, unemployment is at historic lows; wage growth continues albeit at a slower pace; renters, on average, still have more money than they did before the pandemic. Occupancy held steady at 92 percent in 2022. But, the market is uneven and, therefore, the outlook varies greatly depending upon the submarket and the class of the property. Expect Class A properties to continue to do well. Yes, rent increases will be lower but occupancy should remain strong. Middle income properties will be a bit of a mixed bag and lower income properties will see some challenges... Read More