U.S. multifamily property prices fell 25%, but not because of weak demand. Occupancy sits at 94.2%, rents are still growing, and 600,000 new units were delivered, the most since the Nixon era. High interest rates alone are crushing valuations.
Prices are down 25%. They're down for one reason. There's no demand issue in the United States. Multifamily vacancies are at 94.2%, which is actually a little bit higher than 94% historical occupancy levels. Rent growth is a little weak, but it's positive. So rent growth in the United States was a little under 1% in the last 12 months, which is phenomenal considering that, you know, over the last 12 months we've delivered more than 600,000 apartment units. So to have positive rent growth in a timeframe where you have the largest delivery of apartments since Richard Nixon was president shows shows just how insanely strong multifamily demand is. The demand is incredibly strong, occupancy is incredibly strong, rent growth is positive, but prices are down 25%. They're down for one reason: high interest rates.
