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U.S. Multifamily Sets New Records Across Key Metrics
The U.S. multifamily market set records in 2021 with total investment volume of $335.3 billion, nearly double 2019’s prior peak of $193.1 billion; 617,500 units absorbed, a 58% increase over the record set in 2000; and the national vacancy rate falling to just 2.5%, the biggest annual decline to date, according to CBRE’s latest report.
Last year’s performance signals a significant rebound for the multifamily market, which had one of its strongest years in 2019 before being challenged by the pandemic and the related downturn in 2020. Average net effective rent also rose by 13.4% year-over-year and exceeded pre-pandemic levels in all but three of 69 markets CBRE tracks.
“The 2021 multifamily market was extraordinary, by any measure,” said Brian McAuliffe, president of multifamily capital markets for CBRE. “We expect the ongoing economic recovery, job creation, wage growth and household formation to support continued strong multifamily demand in 2022.”
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