It's the rental part of the US housing market that's setting up for a hard landing
While investors were focused on fears of a collapse in the homebuying industry, a crash in the apartment market has been taking shape.
All this is happening while there are more apartment units under construction than there have been in more than 50 years, which will dump even more supply onto the market. Even before accounting for the possibility of job losses and a recession in 2023, this increased supply will create more vacancies.
The hope is the rental-market adjustment we get in 2023 is orderly — tenants get a break on rent prices, investors take some losses, the market rebalances and life moves on in 2024.
Bloomberg 9 januari 2023