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Multifamily Leasing in 2022 Continued to Defy Pre-Pandemic Norms
News provided byMRI Software
Jan 24, 2023, 9:00 AM ET
MRI Software's Latest Report Reveals a Continued Break from Typical Seasonality
SOLON, Ohio, Jan. 24, 2023 /PRNewswire/ -- Autumn, rather than summer, was the hot season for leasing in 2022, according to the latest Market Insights report from PropTech firm MRI Software. Lease pricing peaked in October, diverging from traditional pre-pandemic seasonality, before decreasing toward the end of the year. Similar anomalies appeared in 2020 and 2021, with peak pricing occurring in the month of November for each year. In contrast, the peak month of 2019 was July.
Additional findings, based on data from one million market-rate units, underscore how atypical the year was. For example, rent pricing attained a record high: In October, the average exceeded $1,800 a month. Meanwhile, concession volumes fell to pre-pandemic levels, but the average concession value was double that of pre-pandemic values.
Pricing and concession values don't represent the only nuance, says Brian Zrimsek, industry principal at MRI: "It's tempting to view the pricing data from 2022 as clear-cut evidence that housing affordability is more out of reach than ever, but the rent-to-income ratio remains very similar compared with prior year data, so you have to look beyond the headlines."
In contrast to the data on leasing activity, data on technology adoption yielded no surprises. Although traffic and touring volumes decreased, application volumes and move-ins stayed consistent, indicating that prospects continue to gravitate to online research on availabilities. And the use of resident portals, electronic payments, and online service requests continued to rise, as anticipated.
"I say it again and again: Once you adopt tech, you don't go back," Zrimsek remarks. "I expect this momentum to continue in 2023. As for leasing activity, that's a little harder to forecast, especially given recent fluctuations in the economy. But we'll continue to compile and analyze the data to help the industry navigate whatever market developments arise in the coming months."
The full report is available for download 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 two 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 mrisoftware.com.
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SOURCE MRI Software