Multifamily Continues Strong Momentum into 2022

The multifamily-facility market has been not only resurgent, but also scorching – and that’s on the national level. Here’s the top of a recent analysis from FreddieMac:

Throughout 2021, strong economic conditions and changing migration patterns have pushed multifamily market fundamentals to record-breaking levels. The economic and multifamily recovery is expected to continue through 2022 … .

California real estate, of course, is on (if not ahead) of this curve. A relevant case in point is the recent activity from Waterford Property Company and California Statewide Community Development Authority (CSCDA). These two joint powers acquired more multifamily properties by asset value in 2021 (totaling about 4,000 units) than any other buyer in a single calendar year (~$2.06 billion) in California’s history, according to a news release, which included:

Waterford acquired more than $2.057 billion worth of projects across Southern California totaling 4,014 units of multifamily housing. The acquisitions were made as part of Waterford’s Essential Housing Program which now counts 15 properties in Los Angeles, Orange and San Diego counties.

Increases in Southern California rents continue apace:

• Orange County’s annual rent growth at 17.3 percent from 2020 to 2021
• Los Angeles County lagged behind, yet still saw an increase of 6.6 percent for rents
• San Diego County’s rent average soared, with multifamily rents increasing by 17.8 percent for the luxury market and 16.1 percent.