According to the final 2021 monthly report on the multifamily industry from Yardi Matrix, national average asking rents rose 13.5 percent year-over-year between 2020 and 2021.
In December, average asking rents increased $2 to an all-time high of $1,594. Over 12 months, the average U.S. apartment asking rent rose $190. Factors driving the growth included pent-up demand, household savings and unit absorption, which bested its previous high from 2015 by 50 percent.
However, after 2021’s records, rent growth is expected to slow down in 2022, according to Matrix experts.
“It should be a strong year by historic standards, but closer to the five percent annual increases recorded in the middle of the past decade,” Matrix analysts write in the new report. Driving the strong market conditions are record high national occupancy rates and a strong economy. Consumers’ overall financial health should continue to prompt creation of households, which bolsters multifamily performance.
Single family rentals also remain in high demand, and single family asking rents rose 13.8 percent year-over-year in 2021.
Learn more in the latest Yardi Matrix Multifamily National Report.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email firstname.lastname@example.org, call 480-663-1149 or visit yardimatrix.com to learn more.