Multifamily rent growth is expected to moderate in 2022, after a year in which national asking rents were up 13.5%.
New research from YardiMatrix predicts that rents will still remain elevated, with gains of around 4.8% over the course of the year. Demand is also expected to remain robust, as job and wage growth will likely remain high.
"Consumer balance sheets are healthy, which provides the financial wherewithal to create distinct households and pay higher rents," the report notes. "Some households will continue to be frozen out of homeownership by house prices, which increased by 20% in 2021. Mortgage rates are likely to rise in 2022, which also makes renting more competitive. Plus, the ongoing migration of population to secondary and tertiary markets in the South and West will funnel demand into areas that have grown rapidly in recent years."
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