The affordable housing sector was somewhat flat in Q4 2021 than in the previous two quarters, but the asset class is expected to see similarly strong results in 2022, according to a new analysis by David Caputo of Moody's Analytics.

The national vacancy rate for the sector fell by 0.1% in Q4 to hit 2.3%.  The vacancy rate has tended to stay in the 2 to 2.6% range since Moody's Analytics REIS began tracking the sector, and Caputo says he expects it to stay within that range in the near future. Construction completions were also sluggish, with just 4,861 new units coming online during the quarter, far short of the fourth quarter completion average dating back to 2016, which is just over 11,000 units.

On a metro level, Atlanta and Houston posted the strongest net absorption figures, and occupancy rose most in Midland, Syracuse, and Tulsa.  Wichita, Kansas City and Charlotte had the sharpest drops in occupancy.