Apartment Absorption Returns to Pre-Pandemic Norms as Migration Slows
Yardi Matrix reported rents as “flat” the past three months, standing at $1,718 three months in a row.
Slowing migration patterns in some markets is among the factors Yardi Matrix found that led multifamily absorption rates to “return to pre-pandemic norms” as of August.
Absorption measured at 223,000 units through the first eight months of 2022.
Absorption has flattened or turned negative in some formerly hot markets such as Atlanta, San Antonio and Phoenix, where occupancy rates are slipping as supply growth outpaces demand, according to the report.
Those markets had been paced by positive migration trends that that were set off by the pandemic and its COVID-19-induced shutdowns.
Additionally, “a combination of job loss and increased working from home led families to look for less expensive housing,” according to the report.
Meanwhile, today’s cooling economy has led multifamily rents to hit a standstill, with asking rents flat this summer at $1,718 for three months in a row.