by Brenda Richardson, Senior Contributor | Forbes
The housing market is sending clearer signals that historically low mortgage rates and the home-buying frenzy have come to an end. As we near the end of 2022, here’s a look at the expectations of real estate experts for 2023.
The increase in mortgage rates from 3 to 7 percent has dramatically slowed home buying. As a result, RangeWater anticipates the demand of rental housing to rise. Both conventional multifamily communities and build-to-rent neighborhoods provide affordable options to meet the needs of an underserved population. As a nation, we are under-housed by 3+ million homes, which even at full production, is a difficult gap to close.
While demand for rental housing should remain robust in the medium to long term, our industry is facing significant headwinds including rising interest rates, inflated construction costs and a slowing economy. For all these reasons, I anticipate 2023 to be a challenging year, but anticipate improvements in late 2023 leading into continuous improvement throughout 2024 into 2025.