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.