Last year, apartment rent growth was a tale of two cities, or at least two types of cities. Rents plummeted in major metros—in some cases by double digits—and jumped in small cities and suburbs—in some cases by double digits. This year, rents rebounded back in the big cities and continued to grow in emerging markets. This new period of rent growth is likely to be the new normal over the next 12 months.

"We have this supply-demand dynamic. All of the reports I am reading say the same thing: we have never seen anything like this before, and I think it will persist for a long time," Blake Okland, vice chairman and head of multifamily investment sales at Newmark, tells GlobeSt.com. "The wind is so behind our back as it relates to supply in the submarket."

Prior to the pandemic, there was a national supply-demand imbalance that had driven a near decade of multifamily rent growth. That dynamic didn't change during the pandemic. Now, it is creating a foundation for a new cycle of rent growth, at least for the next 12 months. "We are not even a year into this dynamic," says Okland. "Multifamily shows the best in a downturn. It is a very needs based asset. I think that the thesis for multifamily has continued to gain adoption both domestically and globally. It has become an increasingly desired and safe destination for capital."