Predictions for 2023 show rent prices likely will soften to more “normal” growth, albeit on the low side. Although 2022 saw beefy increases in rent—6.4 percent nationally, on average—they started to taper off late in the year. Signs point to slowing GDP growth earlier in the year and possibly a shallow recession in Q3-Q4 or Q4-Q1, and hopefully the Fed will pull back on interest rate hikes by Q2. Class A buildings will be hit hardest, particularly in markets with robust development (like Phoenix), but the continuing lack of single-family inventory and high mortgage rates will help maintain demand for rentals. Yardi Matrix tempers its expectation on average asking rent growth from 3.1 to 2.6 percent for this year.