01 Jun Yardi National Multifamily Report April 2022
Yardi National Multifamily Report April 2022
Source: Yardi Matrix
Amidst the U.S. economic volatility and recent hiccups, multifamily continues to strive while having a small handful of weaknesses within the product type. Even then, the demand for rent growth remains prominent as it has been positive in each of the top 30 metros over the past year. While many thought multifamily growth would slow down after such a strong year, it has held up very well during the first two months of the spring leasing season. This may not last too long as the federal reserve is still expected to maintain its tightening policies which could restrain growth. Even in the event of a mild economic slowdown, the supply-demand connection will remain favorable for multifamily. With the increase of higher mortgage rates, there has been a slight decline in the for-sale housing market which likely keeps renters in the multifamily product type. Multifamily rent growth has been driven by a large-scale housing shortage in the U.S and in addition, analysts estimate that we are about 2 to 5 million housing units short of what is needed nationally. Rising housing prices along with increasing interest rates continue to make the entrance to homeownership extremely difficult. Even though single-family and multifamily development are on the rise, it will still take a few years to return to equilibrium.
Download full Yardi report here April 2022 Yard Matrix Report.