What You Need to Know to Succeed This Peak Leasing Season
With supply and vacancies on the rise and a shift in renter sentiment, apartment owners and operators face new challenges.
With supply and vacancies on the rise and a shift in renter sentiment, apartment owners and operators face new challenges this peak leasing season.
Supply and vacancy continue to rise
Increases in supply and vacancies are two of the primary economic trends currently shaping the multifamily market.
Supply continues to grow, with 500,000 new units expected to be delivered in 2023, the highest number since the 1980s. Approximately 940,000 new units are currently under construction, a record high not seen since the 1970s. Most notably, 70% of these new units will be 4- or 5-star properties.
Concurrently, markets across the country are seeing an increase in vacancies, a trend that will only continue into peak leasing season and the rest of the year. CoStar forecasts the national vacancy rate by the end of 2023 to be 7.1%, with an even higher rate of 9.8% for 4- and 5-star properties.
Renters seek autonomy as decision times shorten
As competition for renters grows, it’s more important than ever for multifamily owners and operators to understand what renters want. Nearly 36% of renters plan to move by summer, according to a renter survey conducted by Apartments.com in December 2022. The top reason cited is to find a more affordable unit.
During their search, renters know what they want and act quickly, submitting leads only when they’re seriously interested. Over 60% of renters who submit leads on Apartments.com only do so for one property. And the average decision time has shortened from 46 days (2020) to 32 days (2022), according to Apartments.com search data.
What drives renters’ search? Unit-level details and autonomy are key. Nine in 10 renters consider unit pricing, availability, amenities, floor plans, location and view to be integral to their decision-making process. More than 90% of renters expect multiple ways to tour communities, such as in person, virtual and self guided.
Multifamily properties need to boost their exposure
Now is the time to ensure you’re prepared for this year’s leasing season.
“2023 will challenge owners and property managers with the most difficult market conditions since 2008-09,” said Jay Lybik, Director of Multifamily Analytics at CoStar Group, in a recent analysis of multifamily economic trends.
Multifamily properties will need to maximize their exposure and marketing efforts. With 25 million monthly network visitors driven in part by a national marketing campaign reaching 95% of U.S. renter households, Apartments.com is a smart place to start. The site’s comprehensive listings feature hi-res photos, HD videos, virtual tours, unit-level details, robust neighborhood guides, and tour scheduling.
In a changing market, multifamily owners and operators need to adjust their strategy to meet occupancy goals. Visit Apartments.com/grow to arm yourself with industry knowledge, ensure your listings cater to the latest renter expectations, and come out on top this leasing season.
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