Multifamily rents have increased significantly for new leases while concessions have tanked—and the sector is showing no signs of cooling off, according to a group of analysts from MRI Software.

"Two years after the onset of the COVID-19 pandemic, the multifamily market finds itself in a familiar position entering peak season: unemployment has returned to historical lows, housing demand continues to be strong, new supply continues to lag need and housing affordability is back in the headlines," the report says. "These macroeconomic factors, which are normalizing as we move from pandemic to endemic, are setting up owners and operators for strong pricing power as seasonal demand peaks arrive."

MRI predicts that new lease pricing should continue to increase throughout the summer after ticking up roughly 20% over the last eight months.  Data from Yardi Matrix reveals that multifamily asking rents ticked up yet another $10 in February to hit a national average of $1,628, with year-over-year growth also posting a 15.4% increase.