The multifamily market set an annual absorption record of 617,500 units in 2021, according to CBRE. The overall vacancy rate fell by 2.2 percentage points year over year to a record-low 2.5 percent, and average net effective rent increased by 13.4 percent.
In fourth quarter 2021, multifamily investment volume increased by 73 percent quarter over quarter to $148.9 billion. Record annual investment volume of $335.3 billion in 2021 was nearly double 2019’s previous record of $193.1 billion.
Ongoing economic recovery, job creation, wage growth, household formation and the eventual reoccupation of workplaces will support multifamily demand in 2022.
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