Multifamily fundamentals' current trajectory indicates that it is on track for a healthy 2023, according to Freddie Mac, although it may be a stronger second half compared with the first half, according to its 2023 Multifamily Outlook report.

Rents are projected to remain positive but continue to moderate, with the early few months of the US economy overall carrying a great deal of weight.

"Vacancy rates will increase from a combination of slower demand due to economic uncertainty and the high volume of new supply entering the market," according to Freddie Mac. "Similarly, the volume will be muted until interest rate volatility can be curbed allowing for price discovery.