Recent studies of the multifamily market tend to report that rents are falling in many areas and vacancies are slightly higher. A new study from YardiMatrix shows much the same thing. But it says looking at the sector from a short-term perspective distorts the picture, producing "a myopic result."

"Rent declines in some markets in recent months pale when viewed next to the growth since the start of the pandemic," the report stated. Noting that the average U.S. asking rent fell $6 to $1,713 in November, it pointed out that this level is 23.5% higher than it was when Covid started spreading in March 2020.

"Even if rent growth remains muted, multifamily performance should stay strong because demand for housing exceeds supply," the report predicted. "The uptick in deliveries slated for the next two years will create some balance, but unless supply growth is sustained, the market will soon come to another period of imbalance."