After a couple of incredible years in Multifamily, 2023 is forecasted to have rougher waters than before. When the fiscal year began, we at ResMan were hoping to gain a better understanding of the industry's fears and challenges they’d have to navigate. Instead of making guesses, we decided to go straight to the source by sending out a 2023 Multifamily Challenges Survey, “What is keeping you up at night?” to regional managers and executives across the country.
The answers differed slightly but, for the most part, rental housing seemed to be in agreement about a few things. Here are the results:
We asked responders to share their budgeted rent growth projections as well as their current confidence in delivering on those budgeted goals. Most were projecting a minimum of 3% rent growth, however, the confidence of meeting those goals seems less than optimistic, with 80% some or no faith in delivering.
For those who felt nervous about delivering on their 2023 budgeted goals, survey responders seemed to consistently agree on a few specific hurdles. Staffing shortages and employee turnover were at the top, which was not exactly a surprise as we consistently hear the industry is still struggling to hire and retain employees and maintenance staff. Concerns about a recession and the ability to meet revenue targets if we do enter a recessionary period were also top concerns, followed by inflation and expense management which would likely impact operational control.
Meeting make ready SLAs and the potential impact of rent control in key states also made the list. And lastly, a minority of executives showed concern over resident retention, construction delays and deal slowdowns, supply chain disruptions and the potential shortfall in demand.
It seems that 40% of responders believe there is still a chance we won’t see a recession, despite majority of reporting by financial analysts saying otherwise. Time will tell and its potential impact on multifamily is yet to be determined. We are confident that rental housing will weather the storm just like it has before.
Thank you to all survey responders for offering your time and thoughts with us. We are here to support the industry and our customers no matter what lies ahead. ResMan was developed during a recession and includes unique features that give property management companies the visibility and tools they need to proactively manage and grow their business even during challenging economic times. Regardless of what it is that keeps you up at night and despite any 2023 multifamily challenges, ResMan will walk by your side the entire way! To learn more, request a free demo.
If you’re interested in ResMan as a software provider for your daily operations, book a demo to see the product up close.