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Multifamily’s Record-Setting Rent Growth Likely to Slow in 2022
National average asking multifamily rents rose 13.5% year-over-year between 2020 and 2021, with December’s average hitting an all-time high of $1,594 per month and unit absorption exceeding the previous high set in 2015 by 50%. However, following the record-setting gains seen in 2021, 2022 is expected to see rent growth decelerate, Yardi Matrix reports.
“It should be a strong year by historic standards, but closer to the 5% annual increases recorded in the middle of the past decade,” Matrix analysts write in the new report. That being said, Matrix analysts see many of the conditions that drove 2021 growth carrying over into the new year.
Among those conditions are record high national occupancy rates and a strong economy. Consumers’ overall financial health should continue to prompt creation of households, which bolsters multifamily performance.
Single-family rentals also remain in high demand, and single-family asking rents rose 13.8% year-over-year in 2021.
- ◦Lease
- ◦Economy
