Multifamily outlook remains positive – report

The multifamily sector should remain resilient against economic volatility, according to real estate research firm Yardi Matrix, with rents expected to increase by 7.9% by the end of the year.

Rent growth remained strong at double-digit percentage levels for the first half of the year, even as it dipped below the record-high levels seen in 2021. As the latest Matrix Multifamily National Report revealed, average asking rents went up by 5.7% in the first six months of 2022, marking a year-over-year growth of 13.7%.

This strong performance has helped boost multifamily supply, with over 145,000 units delivered and 900,000 units under construction by midyear. An additional 420,000 units are expected to be delivered through the year, marking a 2.8% increase in stock. This is the highest number of deliveries since before the global financial crisis, according to Yardi Matrix.