Yardi Matrix Lowers Rent Growth Forecast for 2023

In its latest report, Yardi Matrix has reduced the U.S. rent growth forecast to 2.6 percent from 3.1 percent. The report considers this rent growth to be more in line with pre-pandemic levels.

The change is largely due to moderating rents in some of the nation’s outsized markets including eastern LA County, Miami, the South Bay Area, Tampa, and Manhattan.

Meanwhile, Yardi-Matrix indicates that with predictions of Federal Reserve increases in February and again in March, there could be continuing pressure to stop rate hikes as layoffs mount in the tech sector and spread to other sectors, and as inflation continues to cool.