2021 finishes with record multifamily demand

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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