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Northmarq Sees Multifamily Momentum Continuing Through 2022
Multifamily properties across the U.S. posted record-setting performances in 2021, with the momentum forecast to carry over into 2022, Northmarq says in a Multifamily National Outlook prepared by research director Pete O’Neil. Investors were drawn to the sector’s explosive rent growth, tight vacancies, spiking absorption and strong migration trends, leading to a surge in investment capital last year.
The sector continues to experience more demand than supply, giving rental operators added pricing power. The demand-supply imbalance is driven by several factors including: sticker shock from would-be homebuyers priced out of the housing market; labor shortages, supply chain deficiencies, and escalating material costs postponing construction of new multifamily product; and robust migration growth.
“Our report shows that supply continues to lag demand for rental units, leading to rent increases and a continued robust appetite for investments, which we anticipate will continue in 2022,” said Trevor Koskovich, Northmarq’s president – investment sales.
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