Even as interest rates rise and inflation pressures deals, the multifamily sector remains strong, with occupancy rates remaining high and rents staying relatively solid.

Overall, supply and demand for the asset class remains out of balance: asking rents for existing units are up 12.6% year-over-year through July, and the US is currently estimated to be at a 600,000-unit apartment shortage, according to the National Multifamily Housing Council and the National Apartment Association. Yardi Matrix data shows that occupancy sits at around 96% nationally as of June 2022.

Lending also remains active in the space, with commercial and multifamily mortgage loan originations increasing 19% year-over-year in the second quarter, according to the Mortgage Bankers Association. While the pace of borrowing and lending backed by CRE slowed from the first quarter of 2022, it still set a quarterly record from April through June. Multifamily originations were up 24% year-over-year in Q2.