The multifamily market has seen transformative growth in the last few years. Will it continue? What does it mean if it doesn’t? Our State of the Multifamily Real Estate Report has all the data, and the recommendations you need.

Learn what is driving the multifamily industry in 2023 below.

Rental Growth

In June 2022, median US rent rose to above $2,000 a month for the first time ever. However, as we enter into the new year, it’s clear that the accelerated rent growth the market saw during the height of the pandemic has ended for most regions—with the exception of the Sun Belt where markets in Florida, North Carolina, and Tennessee are still seeing strong growth above 10%.


From 1960 to 2021, US inflation averaged 3.8% per year. In 2022, the inflation rate has reached 8.5%. This is the highest rate the nation has seen in over four decades. The federal reserve has been increasing interest rates to try to give some relief to consumers, but the effects of the historic increase on the multi-family industry are already being felt. However, it’s possible that help is on the way.

Housing Affordability

The pandemic, inflation, and supply chain issues have exasperated housing affordability issues in the US. We’re now seeing housing affordability rates worsen to levels not seen since early in the 2000s financial crisis. The Biden administration is stepping in with the Housing Supply Action Plan. In the meantime, potential homebuyers (and investors) are being pushed into the rental market instead. 


Costs to develop, build, and maintain multifamily properties are rising. Meanwhile, so is the demand for units. It’s unlikely that the US will have the single-family housing inventory it needs for years, so the industry, government, and consumers will turn to multifamily. This means that while costs are up, investments are worth it—if done right.

New Construction

While costs to build are rising, demand for multifamily units continues to climb. This means new construction is needed and fast, even at extra cost. Unfortunately, multifamily projects typically have longer lead times than single-family homes and construction will slow in 2023 due to costs, inflation, and interest rates.

What now?

So what does the data show and what does it mean for the health of the multifamily market in 2022 and heading into 2023? Read our State of the Multifamily Real Estate Report to learn more—and to get recommendations on how to act to meet the market.

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Danae Martin

Danae Martin is a Growth Lead at Rhino. She enjoys soaking up sunshine, exploring new cities, and lifting heavy weights.