Multifamily Market Commentary
2022 Outlook for Multifamily Affordability – Erosion in Affordability Unlikely To Be Reversed in 2022
February 17, 2022
Some of the strongest nominal wage growth in recent years for hourly and non-supervisory employees was seen in 2021. However, pent-up demand, coupled with an improving economy and generous concessions available on many multifamily units, allowed rent growth to soar to 10% in 2021. In addition, the multifamily vacancy rate fell by 1.0% in 2021 to 5.0%, below the long-term average of 6%. As a result, the long-term trend of erosion in affordability continued in many metros in 2021.