Multifamily Leasing Reverting to ‘Old Normal,’ Becoming More Predictable

Latest Data from MRI Software Shows Similarities to Pre-Pandemic Patterns

Solon, Ohio – September 27, 2023 – Although hybrid and remote work arrangements continue to impact the office market, the multifamily market is reverting to pre-pandemic patterns and becoming more predictable, according to the latest Market Insights report from PropTech firm MRI Software. The report, which analyzed data from over one million market-rate units from January through the end of August 2023, uncovered trends similar to those of 2019.

Highlights:

• August represented a seasonal peak in rental rates, just as it did in 2019, indicating a return to traditional seasonality. Additionally, rent growth has stabilized; the huge increases in 2021 and 2022 have not reappeared and are unlikely to do so during the remaining months of 2023.
• Another sign of potential stabilization and a return to the “old normal” is a rise in renewal rates. Before the pandemic, renewal prices typically exceeded new lease prices for a 12-month term. But during the pandemic, renewal prices started to lag new lease prices. Now renewal prices are catching up again – the difference in August was less than 1%.
• Additional similarities between 2023 year-to-date and 2019 include a diminishing gap between move-in and move-out volumes.

“It looks like the new normal is making way for the old normal,” says Brian Zrimsek,
Industry Principal at MRI Software. “Landlords and managers can more confidently use 2019 as a forecasting tool for the coming months.”

He continues: “Barring significant economic or societal events, we can expect an autumn and winter without too many surprises. As many organizations are determining their budgets for 2024, the predictability is welcome.” The full report can be downloaded here.

About MRI Software
MRI Software is a leading provider of real estate software solutions that transform the way communities live, work and play. MRI’s open and connected, AI-first platform empowers owners, operators and occupiers in commercial and residential property organizations to innovate in rapidly changing markets. MRI has been a trailblazer in the PropTech industry for over five decades, serving more than six million users worldwide. Through innovative solutions and a rich partner ecosystem, MRI gives real estate companies the freedom to realize their vision of building thriving communities and stronger businesses. For more information, please visit www.mrisoftware.com.

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Rachel Antman
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