Apartment market sees continued rental growth in 2022
Rent growth in the multifamily sector has held up strong in 2022, despite concerns about a softening economy. Nationally, the average asking rent increased in April to a record high of $1,659 per unit, according to Yardi Matrix, and it has grown 14.3 percent year-over-year.
“Demand for housing is driving pricing, and that is not going away any time soon,” said Sean O’Neill, area vice president at Morgan Properties, in an interview with IREI.
O’Neill also pointed to a supply-demand imbalance in the market: “Starts on new inventory in multifamily have been arrested since the onset of COVID. The housing market is also constricted, and we are recording record low inventory numbers for available single-family homes. The rental market still remains the best choice for most people.”
Limited new supply continues to be a factor, as development has not kept pace with demand. High material and labor costs are limiting construction, along with regulatory hurdles