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Apartment rents still growing 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 May to a record high of $1,680 per unit, according to Yardi Matrix, and it has grown 13.9 percent year-over-year.
“Demand for housing is driving pricing, and that is not going away any time soon,” says Sean O’Neill, area vice president at Morgan Properties.
O’Neill also points 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. “The impact on labor suppl