U.S. Apartment Rents Expected to Continue Growth Through Year-End
The national outlook for the multifamily sector remains positive through the end of 2022, according to Yardi Matrix’s latest U.S. Multifamily Outlook report. Asking rent is expected to increase around 8% by year’s end, ongoing inflation and recession concerns notwithstanding.
Average national asking rents increased 5.7% in the first six months of the year. Year-over-year rent growth at the year’s midpoint was 13.7%, down 100 basis points from the end of 2021 and 150 bps from the February peak of 15.2%.
“While growth is moderating, we expect gains will continue to remain well above trend, with average asking rents increasing by 7.9% nationally by the end of 2022,” the forecast says. However, that’s far from 2021’s record 14.7% increase.
Property fundamentals continue to be exceptional, with demand driven by robust household formation, job growth, migration to suburbs and secondary markets, and the affordability problem of single-family homes for many would-be buyers.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).