During the pandemic, multifamily fundamentals were just fine. The market segment wasn't experiencing the resiliency and rapid growth of industrial—the shining star of 2020—but it also didn't struggle like office and retail properties. Overall, multifamily rent collections remained strong throughout the year, albeit lower than pre-pandemic rates, and while rents in select major metros fell, smaller cities had some rent growth. It was all just fine—a passing grade.

In 2021, as the pandemic has receded and vaccines have been distributed, the multifamily market is far more than fine. Fundamentals have roared back, and investors are seeing rent growth, tight vacancy rates and positive migration patterns across the country. It is safe to say that multifamily is enjoying its recovery.

RENT GROWTH DRIVES RECOVERY

Rents are increasing as rapidly as they fell across the country. From January to June, rents have increased 9.2%, according to research from Apartment List. Before the pandemic, apartment rents in the US increased an average of 2% to 3% from January to June. "The multifamily market is extremely hot, everywhere. Most recently in June, we measured rent prices rising in every single one of the nation's 100 largest cities," says Rob Warnock, senior researcher at Apartment List.