Multifamily rent prices continued to rise in January, up $8 and reaching a U.S. average of $1,604, according to the latest Yardi Matrix Multifamily National Report.
This increase was higher than typical seasonal expectations and tracks with a trend that began last year, which was a historic period for multifamily rent growth. Year-over-year, rents increased 13.9 percent.
Rents are unlikely to continue this clip of growth throughout 2022, January’s performance is still an indicator that demand remains strong. Last year saw 460,000 multifamily units absorbed, according to the report, which is more than double the previous year and more than 50% above the previous annual high.
Absorption in 2021 was led by Dallas and Houston. Five of the next six highest performers were gateway metros Miami, New York, Chicago, Washington and Los Angeles, all of which absorbed 20,000 units or more.
Freddie Mac’s 2022 multifamily outlook concludes this about the market: “The strong economic conditions along with unprecedented levels of demand for multifamily housing have combined to create robust apartment market conditions in 2021. While there are still uncertainties, such as increasing inflation or more transmissible variants of the COVID-19 virus … the multifamily market is expected to be on solid ground in the short term.”
Learn more in the latest Yardi Matrix Multifamily National Report.
