What’s Ahead For Housing In 2023: Time For Government To Invest In Housing
Yesterday, I posted a prediction mostly about what is likely to happen with owner occupied and single-family housing in 2023. What about rental housing? My prediction about rental housing is based on Zumper’s national rent report for November, some of the last numbers out for rents in the United States. As with single-family housing, rental housing production is likely to slow and stop in the year ahead. There are different dynamics with multifamily housing products, but as in 2008 and 2009, higher costs for financing and lower demand will slow and stop creation of new apartments. As demand falls, so will rent, further discouraging investors. Just like single-family, much will depend on where people who have cash put their money and whether local governments watch things unfold, make it worse, or try to make it better.