Reports and Materials

Rent growth is beginning to abate and is expected to return to more familiar territory next year. However, uncertainty persists due to a clogged supply chain, weaker-than-expected jobs growth and other pandemic-induced maladies.

Rent increases in higher-end buildings drives another month of record growth, but high volatility is expected to persist in the short term. However, upward pressure on lower-end wages should provide strong support for continued rent increases for workforce housing across markets.

Record-setting month-over-month rent increases in some markets seem likely to continue until fall. The gateway cities, which have been slower to recover, are showing signs of life again and should see rent growth acceleration into 2022. Mounting concerns of an extended inflationary period threaten to pump the brakes on a white-hot recovery.

Supply of new storage facilities for recreational vehicles and boats has failed to meet demand, as post-pandemic sales of the “adult toys” have reached record highs. Yardi Matrix’s first-of-its-kind database of RV/boat storage facilities demonstrates the segment’s outsize potential for rapid growth.

July marked a significant slowdown in rent appreciation, but that is seasonally typical. Supply and demand fundamentals remain favorable for multifamily, marked by a strong job market, higher mortgage rates and an undersupply of apartments across the country. As a result, rent growth will remain solid through the end of the year.

The recent increase in interest rates is forcing institutions to reassess growth strategies in the single-family rental market. Institutions have allocated tens of billions of dollars to the sector in recent years. Growth in the near future, however, may be concentrated on build-to-rent projects, which are being delivered at record levels.

Forty-year-high inflation is forcing the Fed to move quickly in raising interest rates, but the job market remains very strong. While the chance of a recession in the next 18 months has increased, we still see a less than 50% chance of that happening. Strong demographics and limited supply will keep apartment rent growth strong throughout the year.

Traditional drivers of multifamily rent growth were upended during the pandemic, first as shelter-in-place policies led to massive job losses and migration, and then as the employment rebound and loosening of restrictions caused demand to skyrocket. What are the implications for multifamily going forward?

The Federal Reserve will aggressively raise interest rates through the remainder of the year, but an extraordinarily tight labor market should provide protection from a deep recession. The war in Ukraine threatens to further exacerbate some supply-chain challenges and could keep energy and food prices at elevated levels, but fundamental supply and demand forces in multifamily will keep the sector strong.

Americans are buying recreational vehicles and boats at record levels, in part due to trends exacerbated by the pandemic. That’s creating a surge in demand for storage facilities that focus on servicing large vehicles. Yardi Matrix, the leading provider of data for the self storage industry, has stepped into the breach with the first national database of RV/boat exclusive storage facilities.

Rent growth slowed somewhat in November but remains historically high as we approach the new year. And it is not the only area with notable increase. Though Omicron actually seems unlikely to cause severe disruptions, inflation is focusing all eyes on the Fed to guide the economy to a soft landing.

Usage of high-yield debt has increased in recent years, despite limited historical data and the high rate of defaults on mezzanine loans in the wake of the global financial crisis. A first-ever study of high-yield debt provides a glimpse into the sector’s performance and some insights for the real estate market going forward.

White-hot demand for housing across the country pushed multifamily absorption to an annual high just three quarters into 2021, according to Yardi Matrix data. The news is particularly good for gateway metros, which had negative absorption in 2020 due to the pandemic but have posted the highest absorption numbers so far in 2021.

Demand for industrial real estate has been transformed by the e-commerce revolution and growth in consumer spending. Total stock has jumped in recent years, while an unprecedented amount of new supply is in the pipeline. Will the key drivers of demand continue to support this growth, and what metros will see the biggest impact?

The COVID-19 pandemic has boosted demand for single-family rentals, prompting institutions to commit billions of dollars to the sector. Many institutions are finding SFR investments to be most efficient in large communities and are increasingly building their own. This paper highlights SFRs’ scope and property performance, collected by Yardi Matrix on more than 80,000 units.

The Q2 2021 BOMA International COVID-19 Commercial Real Estate Impact Study reveals that optimism around the return to the office is growing, mediated by tenants’ increasing clarity around the new normal of office and remote work practices. This is the second in a series of studies commissioned by BOMA International, underwritten by Yardi and developed by Brightline Strategies.

Environmental risk has been pushed to the forefront of commercial real estate by the growing number of weather disasters and concerns about climate change. Which markets pose the most risk to property owners? To find out, Yardi Matrix created a scorecard that grades metros on environmental factors and government response.

COVID-19 has transformed the office market, with empty spaces growing as companies implement flexible work schedules. Growing sublease space and shrinking demand have increased the U.S. vacancy rate by 240 basis points since April 2020, according to a new analysis by Yardi Matrix. What’s more, vacancy rates could rise significantly higher, depending on how companies handle return to work.

Multifamily rent growth was impacted as the pandemic forced work from home across many different industries. How soon will rents recover? This report evaluates the role of higher education in predicting market-specific rent growth prospects as the nation emerges from COVID-19.

Multifamily performance has rebounded quickly from the pandemic slowdown, with the exception of properties in urban gateway metro submarkets. According to a study of 78,000 properties in Yardi Matrix’s database, large occupancy declines in the last year have been concentrated in a handful of cities that may take years to recover.

Absorption of multifamily properties topped 250,000 units in 2020, an unexpectedly robust showing given the impact of COVID-19. Fast-growing secondary metros such as Dallas, Atlanta and Denver saw the highest absorption, while growth was negative in high-cost coastal metros. Although the industry faces challenges in 2021, the durability of demand is a good sign moving forward.

U.S. office property sales were heavily impacted by the COVID-19 fallout in 2020, dropping by nearly half year-over-year to $56.1 billion. However, the short-term loss of sales is likely just the beginning of the pandemic’s lasting impact on the office sector. There are numerous questions about future work-from-home trends and corporate office space needs, with the answers uncertain for now. Investors are watching closely to see where the sector lands.

Multifamily concessions rose sharply in the spring and fall of 2020 as multifamily demand waned due to job losses and social distancing measures. The impact was felt most in high-cost gateway markets, while secondary and tertiary markets benefited from the shift in demand. Concessions declined in the fourth quarter, raising possibilities that demand is recovering or rents are being reset.

Uncertainty caused self storage investment activity to stall during 2020’s second quarter, as’ with other commercial property types. The disruption appears to have been short-lived, however, as storage transactions began picking up again in the second half of the year.

After record multifamily transaction volume in 2019, sales plunged in 2020 due to COVID-19. The impact, however, wasn’t felt evenly across the country. A new white paper from Yardi Matrix looks at how sales activity changed, which regions were affected the most, and how investor demand will impact pricing and sales volume going forward.

Job losses during COVID-19 have varied greatly by metro. An analysis by Yardi Matrix found that metros with large tourism concentrations and high-cost Gateway metros fared the worst, while growing Sun Belt and Midwest markets lost the fewest jobs. However, the numbers provide hope for struggling markets to recover post-pandemic.

U.S. multifamily performance remains strong. Despite a deceleration in rent growth, asking rents are up 12.6% year-over-year through July, as demand continues to exceed supply. The National Multifamily Housing Council estimates that the U.S. needs 4.3 million new units built through 2035 to meet demand.

U.S. multifamily performance remains strong. Despite a deceleration in rent growth, asking rents are up 12.6% year-over-year through July, as demand continues to exceed supply. The National Multifamily Housing Council estimates that the U.S. needs 4.3 million new units built through 2035 to meet demand.

Multifamily continued its strong rent growth in June, with average U.S. asking rents rising $19 for the month to an all-time high of $1,706. Robust household formation is driving demand, as people who lived with family or friends during the pandemic have formed independent households. However, absorption is slowing, presaging a second-half deceleration.

Multifamily performance continued its strong run in May. Year-over-year rent growth decelerated slightly to 13.9%, but demand remains robust and broad-based regionally. That said, occupancy data shows signs of possible deceleration, and increased interest rates are creating questions about the durability of property values

Weakening U.S. economic growth has not stopped multifamily rents in their upward climb, as average asking rents rose $15 in April to an all-time high. The rate of growth remains elevated due to strong demand and a long-term shortage of housing that analysts estimate is between 2 million and 5 million units.

Multifamily rents surged again in March, as rent growth hit a record high for a first quarter. Demand is expected to remain healthy, but rent growth is likely to decelerate as concerns grow about the economy. Inflation is moderating slowly, and rising rents and energy prices may keep it elevated longer than expected.

Multifamily demand remained strong in February, as the industry prepares to enter the spring leasing season. Occupancy rates are extremely high in markets across the country, with housing demand outstripping supply. Rent growth once again rose to record levels, although the pace is likely to decelerate in coming months.

U.S. multifamily rents rose moderately in January, a mid-winter month when growth is normally tepid. Demand drivers remain healthy, producing strong rent and occupancy performance and attracting debt and equity investors into the sector. Property sales, pricing and mortgage origination are at all-time peaks.

The multifamily market closed the book on 2021 with strong performance, a good end to a year that featured robust demand and record annual rent growth. Although a repeat of 2021 is not likely, many of the trends that led to the stellar performance remain intact.

U.S. multifamily rent growth moderated in November, increasing only $4 over the previous month. Rent growth is likely to slow further, but demand should continue to be robust. Read more about this and other trends in Matrix’s November National Multifamily Report!

National average asking rents are up 13.7% YoY in October, reaching an all-time high of $1,572. Average U.S. occupancy also broke records this month, reaching a high of 96.1% in September for stabilized properties. Single family home rents also continued to grow.

Multifamily asking rents continue to soar. Average U.S. asking rents rose $16 in September to an all-time high of $1,558 and are up a record 11.4% year-over-year. However, there are signs of deceleration, as September’s rent growth was the smallest recorded since the surge began in February.

National asking rents increased by 10.3% in August, the first double-digit increase in the history of our data set, as nearly all the metros Yardi Matrix tracks exhibited positive YoY rent growth in August. The recovery in rents is widespread, fueled by job growth, excess savings and a return to urban cores.

The multifamily industry had another record-setting month with rents increasing by 8.3% YoY. The recovery is no longer limited to the Southeast and Southwest metros that fared well during the pandemic, gateway markets are also making a major comeback. Rents for single-family rentals in build-to-rent communities continue to grow at an even faster pace than multifamily, with national rents up 12.8% YoY.

Across the country, multifamily rents have skyrocketed. Year-over-year rents are up by double digits in nine of the top 30 markets, while national YoY rent growth is up 6.3%. Emerging from the pandemic, a perfect storm of migration, enhanced government stimulus and a hot housing market, among other factors, has enabled this historic growth.

The multifamily sector had another record-breaking month in May, with national rents recording their greatest increase in the history of our data set. All top 30 metros had positive month-over-month rent growth for the second consecutive month, with New York’s rent growth far surpassing the other metros.

For the first time since March 2020, all top 30 markets had positive month-over-month rent growth. But the real sign of recovery was the improved performance in many gateway markets.

Affordable metros in the West and Southeast continue to be the clear winners coming out of the pandemic. But even expensive coastal and gateway markets have begun to bounce back, albeit slowly.

Many markets experienced strong year-over-year rent growth in February, while others have begun to recover following rent declines in the summer and fall. However, urban cores continue to see rent declines. A major factor in their ability to bounce back is the percentage of the workforce that remains remote once the pandemic subsides.

Nationally, rents remained relatively flat in January, declining by 0.2% on a year-over-year basis. On the market level, some gateway markets appear to have hit bottom, while low-cost tertiary and secondary markets continue to see strong rent growth.

Nationally, multifamily rents ended the year relatively flat, with a slight downward tilt. But the extreme bifurcation between expensive gateway markets and their neighboring lower-cost metros continued into December. Get a complete recap of December market performance in our latest report.

National rents declined for the sixth consecutive month. However, many tech hub and tertiary markets are performing extremely well. Rents in many Midwest and even some Northeast markets have seen consistent growth, possibly benefitting from the exodus out of expensive gateway markets. Explore our latest report to learn how the top 30 markets ranked in terms of rent growth in the month of November.

Self storage street rates fell slightly from their record highs in August, as rate growth moderated both at the national level and in most metros. Despite a slowdown in rate performance, demand for storage remains healthy and development activity continues to increase.

Although street rate growth is moderating, strong demand kept rates at record highs in July. The healthy fundamentals are attracting developers, driving an increase in the new-supply pipeline.

Benefiting from robust demand, self storage performance remains strong and street rates continued to rise in June. Incentivized by the sector’s healthy fundamentals, the development pipeline also continued to grow through the first half of the year.

The self storage sector is still benefiting from strong demand driven by a variety of factors. That has allowed operators to increase street rates while maintaining occupancy, allowing national street rates to reach an all-time high in May.

As the traditional busy season begins for self storage, street rates continued to increase nationwide in April. There is no slowdown in momentum for the sector, which continues to see strong demand among new customers as well as an uptick in both renewals and length of stay among existing customers.

After a year of rapid increases, street rate performance cooled over the winter. However, seasonal growth is expected to return during the next several months, if with more modest rate gains than a year ago.

Street rates remained flat in February, but fundamentals were solid, enabling property owners to maintain 2021 gains. Continued pandemic-fueled demand is positioning the self storage industry for a strong spring rental season in 2022, with resultant healthy rent gains, particularly in Southeast and Southwest markets.

Self storage fundamentals were healthy in January, as street rates largely remain stable sequentially and above-trend on a year-over-year basis. High in-migration markets continue to produce the greatest demand and rent growth, while gateway markets are seeing moderate gains.

Last year was one of the best ever for self storage. Rent growth and occupancy rates were boosted by economic and consumer trends, prompting investors to flock to the sector and push prices up. Will 2022 be an encore year?

Amid ongoing strong demand for self storage properties, year-over-year rent growth remains high. However, rent growth has started to decelerate, with average rents dropping slightly in November. More details can be found in Yardi Matrix’s November Self Storage report.

Self storage rent growth has begun to decelerate, but growth remains extremely robust compared to a year ago. In October, national street rates were up 8.5% for 10x10 non-climate-controlled units and 9.8% for similar-size climate-controlled units. Demand has been driven by robust household formation, college students returning to campus, and migration to markets in the Southeast, Southwest and West.

Demand for self storage remained elevated in August and national rates stayed historically high, once again increasing on an annual basis. The new-supply pipeline continued to be robust at 8.6% of existing inventory.

Demand for self storage remained elevated in August, and national rates stayed historically high, once again increasing on an annual basis. Across the nation, the new-supply pipeline continued to be robust, at 8.6% of existing inventory.

The self storage industry has continued to experience exceptionally strong fundamental performance through July, seeing record setting national rates and increasing development interest.

Storage fundamentals remained strong through the first half of 2021, with June seeing rising street rates and steady development activity across the nation.

The storage sector continued to prove itself as a strong performer. The new supply pipeline is unwavering, and street rates across the country are climbing each month due to heightened demand.

Storage continued its positive momentum in April. Street rates had another strong month and continue to rise nationwide, while there has not been a meaningful shift in development activity.

Self storage continues to ride the demand tailwinds caused by COVID-related disruptions, benefiting sector fundamentals. Street rates are rising and development activity is strong across the nation as we move into the second quarter of 2021.

Aided by a COVID-driven boost in demand, storage maintained positive performance, with solid fundamentals. In February, the sector continued to see strong street rate improvements and development activity remained stable.

Strong fundamentals, including significantly improving street rate performance and stable development activity, are helping maintain a positive outlook for the self storage industry as we move into a new year.

The self storage industry ended the year strong, continuing to prove its ability to fare well even when faced with difficult economic conditions. Street rate performance improved substantially across the nation on an annual basis, and development activity remained relatively stable. Read the full report to learn which markets' street rates ended the year with historical highs.

The self storage industry continued to prove its resiliency in October, with ongoing improvements in street rates across the nation and development activity maintaining a steady pace in most markets.

Demand for life science space has kept the sector’s performance strong this year, with lab space trading at high prices and developers rushing to add more in markets where life science firms cluster. Even the tertiary cluster markets are growing. Read about this trend and get the latest data in this month’s Yardi Matrix Office Monthly.

When COVID-19 swept the U.S., some predicted it would lead to the end of coworking. Today, however, shared space has reemerged as a viable alternative to the traditional office lease, helping fill the gaps left by remote and hybrid work.

Despite seeming like an obvious solution to both falling office demand and housing shortages, conversions of office buildings to multifamily and condos remain rare. Most conversions are concentrated on the Eastern seaboard and are delivering only luxury units. Read about this trend and get the latest data in this month’s Yardi Matrix Office Report.

Many major firms are deploying return-to-office strategies this year. Employee pushback, inflation and rising rates are just a few of the headwinds that the industry faces in a post-pandemic world. Read about this trend and get the latest data in this month’s Yardi Matrix Office Monthly.

The pandemic upended many aspects of office real estate, but mixed-use developments continue to be attractive. Read about this and get the latest data in this month’s Yardi Matrix Office Monthly.

While the pandemic has slowed development, markets with strong domestic migration or life sciences clusters continue to attract new projects. Read about this trend and get the latest data in this month’s Yardi Matrix Office Monthly.

As the pandemic wanes, many companies are looking for ways to entice workers back into the office, driving demand for high-quality space. This so-called “flight to quality” is already playing out in some major markets. Read about this trend and get the latest data in this month’s Yardi Matrix Office Report.

While many subsectors of commercial office have faltered in the last two years, medical office buildings have been a bright spot, attracting increased interest from institutional investors.

For the second time, a wave of coronavirus cases driven by a new variant has delayed many companies’ return-to-office plans. Read about what this means for commercial offices and get the latest data in this month’s Matrix Office Report.

The continued uncertainty around the future of remote work is leading occupiers to want more agility from their office space. Read about the direction coworking is taking and get the latest office data in the Yardi Matrix Office Monthly.

Pittsburgh rents inched up 0.3% on a T3 basis as of August, 140 basis points behind the national rate. The average rent in the metro was $1,211. While recovery is well underway, a lengthier rebound is forecast here.

While the future of the office sector is still uncertain, recent purchases, lease signings and new construction suggest that large tech firms are still committed to physical office space.

While the office sector as a whole has struggled for the last 18 months, demand for life sciences facilities has intensified during the pandemic. Read about this trend and get the latest data in this month’s report.

The spike in COVID-19 cases and hospitalizations driven by the Delta variant has forced many firms to delay post-Labor Day plans to return to the office. Nonetheless, listing rates have not dropped, and sales continue to occur. Read about these developments and get the latest data in this month’s report.

Investors are pursuing underperforming office assets for life science or multifamily use. But conversions are not a fit for every asset. Read about this trend and get the latest data in this month’s office report.

While many buyers and sellers in the office sector are in a holding pattern, there is capital available for certain assets. Sales this year have skewed toward high-quality assets, medical office and buildings with the potential to be converted into lab space.

Sublease space has climbed since the start of the pandemic, as many firms look to reduce their office footprint. Among the top 30 markets covered by Yardi Matrix, 20 saw total available sublease space more than double.

With nearly a quarter of the population fully vaccinated against COVID-19, companies are beginning to plan their return to the office later this year. The reported plans of large tech companies offer a glimpse into how a return may unfold.

As the one-year anniversary of early coronavirus lockdowns nears, office vacancy rates continue to climb in most U.S. markets. New supply in progress has continued to be delivered but is forecast to decline in coming years. Read about the latest trends and data in this month’s Yardi Matrix National Office Report.

As the one-year anniversary of early coronavirus lockdowns nears, office vacancy rates continue to climb in most U.S. markets. New supply in progress has continued to be delivered but is forecast to decline in coming years. Read about the latest trends and data in this month’s CommercialEdge National Office Report.

A picture of how coworking may look in the post-pandemic world is beginning to emerge. Meanwhile, vacancy rates for traditional office space have spiked in the past year, though not all markets are seeing equal bumps.

Last year was a tough one for the office sector, due to the COVID-19 pandemic. Things may turn around in 2021, but the path forward is murky. Read about trends impacting the office sector and get the latest supply and listing rate data in this month’s CommercialEdge National Office Report.

With vaccines for COVID-19 rolling out this month, the long-term prospects of the office industry are relatively optimistic. However, the outlook for the next few years is uncertain. Read about this and other trends and get the latest data for the commercial industry in this month’s CommercialEdge report.

Challenged by global supply-chain issues since the start of the pandemic, some manufacturers with overseas facilities are now considering bringing production back stateside. The reshoring of manufacturing will slowly play out over the coming decade, permanently altering the industrial real estate sector. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Monthly.

Delays in industrial space deliveries are stressing the market, while port-adjacent locations are demanding a premium. Read about these trends and get the latest data in this month’s Yardi Matrix Industrial Monthly Report.

With locations for new industrial space increasingly hard to come by, occupiers and developers are trying different approaches to meet demand. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Monthly.

After dramatically expanding the size of its industrial footprint during the pandemic, Amazon is now pausing projects and looking to sublease space. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Monthly Report.

The economy hit a rough patch in the first quarter due to inflationary pressures and rising energy prices, but demand for industrial space continues to be robust. The national occupancy rate is low and rents are rising rapidly, particularly in coastal markets with major ports. Delivery of new space continues apace despite difficulties brought on by rising construction costs and supply shortages.

Southern California’s industrial real estate demand is far exceeding the rest of the nation. Key markets are seeing the tightest vacancy rates in the country, driving the highest rent growth rates and price appreciation. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Report.

Industrial deliveries hit an all-time high in 2021, largely driven by pandemic-era growth in e-commerce, and the supply pipeline indicates that new records will be set in coming years. Read about this trend and get the latest data in this month’s Matrix monthly report.

Nearly every port has seen record activity, but last year the ports of Savannah and Charleston set records for the number of containers handled. That has led to unprecedented development in the region. Read about this trend and get the latest data in this month’s Matrix Industrial Report.

The COVID-19 pandemic has driven demand for cold storage facilities in the past two years, while Southern California’s ports have led in rent growth. Read about these trends and get the latest data in this month’s Yardi Matrix Industrial Monthly.

While e-commerce growth decelerated in the third quarter, online sales continue to fuel industrial demand for the near term and remains above pre-pandemic levels.

The shortage of computer chips has limited production of countless goods. Billions of dollars are being spent to build chip fabrication facilities stateside, which could have a long-lasting impact on American manufacturing. Read about this trend and get the latest data in this month’s Matrix Industrial Report.

Traditional automakers and upstart companies are ramping up production of electric vehicles to compete with Tesla’s dominance of the market. This is adding demand to an already tight industrial market. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Monthly.

The largest ports in the country are busier than ever, driving demand for industrial assets.

As the world becomes increasingly digital, demand for data centers is growing. Read about this trend and how the Infrastructure Investment and Jobs Act could shape the future of this industrial subsector.

Intense investor demand for industrial assets is driving up the average sales price. Read about this trend and get the latest data in this month’s report.

Industrial continues to be one of the hottest real estate asset classes, with sale-leasebacks growing more attractive to both buyers and sellers during the pandemic. Find out why and where these transactions are happening in the latest Yardi Matrix Industrial Monthly.

With a massive real estate footprint, e-commerce behemoth Amazon is influencing both the industrial real estate investment and development markets.

Southern California has the hottest industrial markets in the country, and demand from Los Angeles and the Inland Empire has spilled over into Phoenix. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Report.

Appetite for industrial space is strong across the country, but new development is being influenced by availability of land and impacting rents. Read about this trend and get the latest data in this month’s Yardi Matrix Industrial Report.

Appetite for industrial space is strong across the country, but new development is being influenced by availability of land and impacting rents. Read about this trend and get the latest data in this month’s CommercialEdge Industrial Report.

Industrial real estate is set for continued growth, following the new highs for demand. E-commerce will continue to gain a growing share of retail sales and the economic recovery will fuel growth with replenished inventories and increased global trade.

Industrial real estate is set for continued growth, following the new highs for demand. E-commerce will continue to gain a growing share of retail sales and the economic recovery will fuel growth with replenished inventories and increased global trade. Read about these trends and get the latest data in this month’s CommercialEdge Industrial Report.

CommercialEdge’s new monthly report explores how the pandemic has caused e-commerce to explode and propelled the industrial sector to outperform other commercial real estate asset classes. Get the details, along with the latest data on rents, vacancy, new supply and transactions in the inaugural edition of our National Industrial Report.

Yardi Matrix’s newest monthly report explores how Industrial has outperformed other commercial real estate asset classes. Get the details, along with the latest data on rents, vacancy, new supply and transactions in this report.

The multifamily market produced exceptional rent growth in the first half of 2022, driven by robust household formation, strong employment growth and households getting frozen out of homeownership. The sector, however, is at an inflection point as soaring inflation is prompting the Federal Reserve to raise interest rates to reduce growth.

The rebounding economy and robust demand created near-perfect conditions for multifamily in 2021, leading to record-high rent growth and absorption. Insatiable investor demand produced chart-topping sales volume and pricing. Yardi Matrix’s 2022 National Multifamily Outlooks provides insights on what to expect in 2022.

Multifamily is emerging from pandemic shutdowns with all the ingredients for a strong second half of 2021. Tenant demand is higher than it has been in more than a decade, producing robust rent growth across the country. It continues unabated in fast-growing secondary markets, while gateway markets are rebounding quickly. Plus, the capital markets are favorable, thanks to high investor demand and liquid debt markets.

After a year dominated by COVID-19, what will normal look like for the multifamily market and economy? The recovery might linger until the second half of 2021, depending on vaccine deliveries. High-cost gateway markets, which suffered the greatest impact from the pandemic, are looking to recover, while secondary metros in the Sun Belt, Midwest and Southwest hope to continue their momentum.

Student housing had another quarter of record-breaking leasing activity and rent growth, which in turn is driving continued investor interest. Yet there are small signs of some slowdown in the coming year.

The student housing industry continues to perform exceptionally well, with preleasing for the fall term off to a very strong start and annual rent growth exceeding pre-pandemic levels. While the rate of growth may dampen, the industry will continue its solid performance, particularly at the larger, more selective universities.

The student housing industry has largely recovered from the pandemic despite news of decreased enrollment. The preleasing period for the fall 2021 term ended stronger than in 2019, and leasing is off to another hot start for the upcoming fall term, at 26.7% as of November. Annual rent growth is also nearing pre-pandemic levels, at 2.2% as of December, just below 2019 levels of 2.4% rent growth.

The outlook is bright for student housing fundamentals as the U.S. emerges from the pandemic. Most universities have announced in-person instruction plans for the fall, and pent-up demand from students who took a gap year, 2021 high school graduates and gradually returning international students will fuel growth in preleasing and rents leading up to the fall term.

Yardi Matrix’s new quarterly report finds prelease activity for the upcoming fall term lagging as students and parents take a wait-and-see approach. Get the details, along with the latest data on rent growth, new supply and transactions, in the inaugural edition of our National Student Housing Report.

Albuquerque rents clocked in at 1.1 percent on a T3 basis through July, the third straight month of above-trend improvement. However, the metro is still fairly affordable by national standards. Deliveries softened, but transaction activity remained elevated, with the volume through July surpassing $502 million.

Chicago’s rent growth accelerated to 1.1 percent on a T3 basis through July, to a new high of $1,814. Demand is strong, with occupancy improving to 95.6 percent, up 100 basis points year-over-year, above pre-pandemic levels. Construction starts jumped 17 percent year-over-year, pointing to increased development activity.

Columbus is set to house Ohio’s largest investment to date: a $20 billion Intel facility in New Albany. Area rents are already topping all other submarkets, and rose a whopping 17.3 percent, to $1,583. The metro’s overall rent growth was slower but nonetheless improved, measuring 1.3 percent on a T3 basis through July, 30 basis points above the U.S. rate.

Denver’s multifamily market has had a stellar decade, but development and investment activity are now moderating. Rent growth in the market surpassed the U.S. average for the fourth consecutive month, rising 1.2 percent on a T3 basis through July, to an average of $1,941.

On the heels of a strong 2021, Jacksonville multifamily is showing signs of cooling off. Rents were up just 0.4 percent in three months, 60 basis points below the U.S. average, while occupancy dropped year-over-year to 95.2 percent. Meanwhile, $1 billion in assets traded in the first seven months of 2022, with an increase in the price per unit.

At a time when most markets are experiencing some form of moderation in rent, development or transaction activity, Nashville is witnessing new highs across its fundamentals. Rent growth on a T3 basis is double the national rate, at 2.0 percent as of July, and investment activity is the highest in a decade.

Nashville rents rose 1.3 percent on a T3 basis through July, to $1,676, a slight deceleration from recent months, with the recovery of leisure and hospitality pressuring the Renter-by-Necessity segment. Meanwhile, investment volume exceeded $2.2 billion, already surpassing all other years except 2021.

Rent growth has moderated in Phoenix since the start of 2022, clocking in at 0.3 percent on a T3 basis through July, to $1,960, trailing the U.S. rate. The softening is likely due to substantial development, with 17,000 units delivered and almost 35,000 under construction.

Queens’ multifamily rent growth slowed to 0.2 percent on a T3 basis, reaching $2,820 in July, although occupancy climbed to 98.3 percent, hinting at strong levels of demand. Developers brought 2,204 units online, accounting for 2.1 percent of existing inventory.

Multifamily investors continue to be keen on Minneapolis-St. Paul despite moderating rent performance, with the $923 million of assets sold in 2022’s first seven months well above the same period last year and on track to surpass 2021’s peak of $1.7 billion. Deliveries have also hit the brakes, with construction starts almost at a standstill due to strict rent control regulations.

Rents rose 0.8 percent on a T3 basis through June, to $1,727, although last year’s deliveries dented the occupancy rate in stabilized assets, which dropped 70 basis points in the 12 months ending in May, to 95 percent.

Baltimore’s multifamily rents grew 9.4 percent year-over-year, to $1,664. Both transactions and construction activity cooled off after an exceptional 2021, with $1 billion generated by sales in the first half of the year and deliveries amounting to 0.3 percent of stock.

After a deep trough and a relatively speedy recovery, Brooklyn’s back. Rents are up 11.2 percent year-over-year, mainly fueled by upscale communities, bringing the average rate $200 above the figure recorded in 2020, prior to the pandemic. With strong demand fueling these rate increases, occupancy improved even as completions accelerated in the New York City borough.

More than $2.1 billion in multifamily assets changed hands in the Queen City in the first half of the year, well above the $1.4 billion transaction volume recorded over the same interval in 2021. Meanwhile, deliveries hit the brakes, but rent growth remained 20 basis points above the 1.1 percent national average on a T3 basis.

Detroit rents rose 0.8 percent on a T3 basis through June, to $1,228, as occupancies slowed but remained relatively high, at 96.5 percent in May. Transaction activity slowed in the second quarter, but the per-unit price rose by a hefty 49.4 percent over the course of a year.

Despite being located in Southern California, the Inland Empire has by far the most affordable rents on the West Coast, at $2,164. With construction activity staying limited and its shipping- and logistics-anchored economy going through arguably its best moment, property values have increased quickly in 2022, with per-unit prices reaching $360,284.

A slowdown in demand put a 140-basis-point hole in the occupancy rate in stabilized properties, causing Las Vegas’ rent growth to moderate. Through June, it was up just 0.6 percent on a T3 basis, to $1,525. Deliveries also lagged, with just 216 units brought online, but investment remained high.

Following a tough pandemic period, Manhattan’s multifamily market is enjoying a strong run, outperforming national rent growth by 10 basis points. Investment was the standout metric for the borough during the first half of 2022, with $3 billion in sales recorded, $500 million more than the previous 24-month total.

Strong demand helped maintain occupancy at 96.7 percent in May, despite robust deliveries. As a result, rents continued to rise, up 1.0 percent on a T3 basis through June, to $1,695. Transaction activity neared $1.2 billion as of June, double the volume recorded during the same interval last year, although signs of moderation were beginning to appear.

The first half of the year ended on a strong note for transaction activity in the metro. Roughly $753 million in multifamily assets traded, almost twice the volume reported in the first half of 2021. Meanwhile, rents maintained their upward trajectory. At the end of June, average overall rents grew by 1.2 percent on a T3 basis, to $1,185.

Rents rose 1.2 percent on a T3 basis through May, and occupancy increased 90 basis points in the 12 months ending in April, to 95.5 percent. Despite the current economic headwinds, transaction activity remained robust, in May coming in above the volume recorded during the same period last year.

Following last year’s robust inventory expansion, Houston rents rose 0.7 percent on a T3 basis in May, while occupancy hiked 130 basis points year-over-year as of April, to 94.1 percent. Transaction activity intensified, with sales volume through May far outpacing last year’s through the same interval.

Orlando posted solid fundamentals across the board at the end of 2022’s first five months. Rents grew by 1.2 percent on a T3 basis through May to an average of $1,796, while sales amounted to $2.5 billion. The occupancy rate also improved, up 90 basis points year-over-year in April.

After leading rent growth nationally for long swaths of the cycle, Sacramento’s multifamily sector is juggling slow construction activity, record-high rents and increased property values. The average rent in the capital of California was $1,936 as of May, more than $250 higher than the all-time-high national figure of $1,680.

Rents in San Francisco were up 8.7 percent year-over-year—to $2,750—a slower pace than in most U.S. markets. However, the metro’s pipeline, with more than 20,000 units underway, shows enduring confidence in the city’s rental sector.

San Jose’s multifamily rents reached a new high, growing 1.8 percent on a T3 basis through May, to an average of $3,006. After a record-breaking year in 2021 with 7,230 units added to the rental stock, deliveries did not start the year at a similar clip, with only 500 units added.

Seattle rent growth outperformed the U.S. as a whole, rising 1.4 percent on a T3 basis through May, while occupancy was up 120 basis points to 96.3 percent in April. As metrics continued to strengthen, investment activity also flourished.

Multifamily continues to be one of the leading growth areas for Tampa Bay’s real estate sector. On a T3 basis through May, rents grew by 1.2 percent to a record $1,797 average. Transaction activity also kept up an accelerated pace, with sales in the first five months of the year totaling almost $3 billion, three times the 2021 deal volume for the same period.

Despite economic turbulence, Washington, D.C., multifamily remained largely unfazed going into the second half of 2022. Rents were up 10 percent year-over-year, while the 37,345 units underway placed the metro’s pipeline fourth nationwide. Meanwhile, $1.9 billion in rental assets traded this year through May.

Rent growth picked up again in Austin, with a 0.8 percent increase on a T3 basis through May, to $1,744, while occupancy increased by 130 basis points in the 12 months ending in April. Current economic conditions somewhat dampened transaction activity, but development remained elevated.

Rent growth picked up in Boston, rising 1.3 percent on a T3 basis through April, to $2,611, while occupancy gained 100 basis points in the 12 months ending in March. On the other hand, deliveries softened, and investment volume totaled $565 million through April.

Denver’s transaction activity surpassed $1.5 billion, with the price per unit rising 13.7 percent in 2022. On the other hand, rents only rose slightly on a T3 basis. Meanwhile, deliveries maintained a recent softening trend.

Los Angeles started the new year on a strong note, hot off a 2021 when multifamily sales reached $5.2 billion. Rents were up 12.7 percent on a year-over-year basis, gaining ground so that it now only slightly trails the nation after a rough pandemic, while the development pipeline had 30,079 units underway.

With rents increasing by 24.6 percent year-over-year through April, Miami ranked first nationally in rent performance. The average overall rent was $2,261, well above the national figure. Transaction activity also intensified, with $2 billion in multifamily assets changing hands in the first four months of the year.

Nashville rents rose 0.8 percent on a T3 basis through April, to $1,591, while occupancy stood at 96.4 percent in March, signs of a tight rental market. Meanwhile, transaction volume nearly reached the $1 billion mark, gaining in price per unit on an annual basis.

Rent growth in Phoenix moderated to $1,645, rising 0.4 percent on a T3 basis through April, likely affected by robust supply additions, which marked an all-time high in 2021. Through April, completions equated to 0.8 percent of total stock.

Going into summer, Portland rentals are on a sound footing, with rent growth at 0.7 percent on a T3 basis, barely trailing the national figure. Improvement is driven by strong demand, keeping occupancy high and development activity accelerated.

Raleigh-Durham rents averaged $1,551 in April, with growth on a T3 basis on par with the national rate. Investment volume surpassed $1.1 billion in the first four months of 2022, and after delivering almost 1,700 units, developers are likely to remain busy in the second half of the year.

As a coastal market, San Diego is not just making strides, it’s overperforming. Rents were up a strong 20.8 percent year-over-year, above the U.S. average and considerably above nearby Los Angeles, the Inland Empire and Orange County. Meanwhile, investor interest remains high, and occupancy is improving.

Chicago average rents reached a new high, growing 90 basis points on a trailing three-month (T3) basis through April to $1,659. Transaction volume in the first four months reached $868 million, up 54 percent compared to the same period in 2021, while construction during those four months was almost on par with the entire previous year.

Atlanta rents are bolstered by a strengthening job market that expanded 5.8 percent year-over-year. The city’s unemployment rate also returned to pre-pandemic levels. A record number of new units completed last year softened rent growth, up 0.3 percent on a T3 basis through March to $1,673.

Brooklyn’s multifamily rents recorded a steady pace of growth during the first quarter and exceeded pre-pandemic levels at $3,123 in March. Demand is rebounding, with 2022 potentially a banner year for rental construction; 14,455 units were underway as of March.

In the first three months of 2022, Charlotte rents grew by 0.7 percent, on par with the national average. Rents averaged $1,522 in March. With the continued influx of remote workers and occupancy rates above 95.5 percent, Charlotte remains a growth market.

Las Vegas rent improvement continued, with rents rising 0.7 percent on a T3 basis through March to $1,493. Investment is also off to a strong start, with $850 million in assets already trading through the first quarter. Still, the local economy has challenges ahead, despite a 12.6 percent job market expansion over the last year.

Following a challenging two years, Manhattan’s rental sector is now improving.. Although the employment market is less hot than the national climate, there are some notable silver linings. 2022’s first three months of property sales already surpassed 2020’s full year total, at just below the $1 billion mark.

Philadelphia wrapped up a banner 2021 with records for transactions and deliveries and kicked off 2022 on the right foot. Some $250 million in rental assets traded in the first quarter, while the per-unit price nearly doubled.

Rents in New York City’s largest borough expanded 0.3 percent on a T3 basis through March, to an average of $2,768. Development continued to recover from a pandemic-driven near pause. Activity picked up momentum in 2021, with 1,186 units added to borough inventory.

San Antonio posted healthy fundamentals at the end of the first quarter, with rents rising 0.7 percent on a T3 basis through March, to $1,247, and occupancy at 95.1 percent. The metro’s investment activity remained elevated, with sales volume amounting to $518 million through the first quarter.

St. Louis had a healthy first quarter, with rents up 0.6 percent on a T3 basis through March to $1,125. Occupancy surpassed the 95 percent mark in February. With healthy demand, investors remained active. Sales volume rose to $304 million in the first quarter, well above the same time last year.

Rent growth in Minneapolis-St. Paul slowed in the first quarter, marking one of the lower increases among major markets. As of March, the metro’s average rent was $1,433, up 0.2 percent on a T3 basis. Completions also moderated, with only 1,018 units coming online so far this year.

Albuquerque rent growth slowed to 0.2 percent on a T3 basis through February, reaching $1,186, while on a year-over-year basis improvement outpaced the national rate at 17.7 percent. Deliveries were sluggish to start the year, with the market notoriously slow to add to its rental stock.

Average rents exceeded $1,000 for the first time in Cleveland, as demand pushed growth on a T3 basis to 0.4 percent. The market is also recording solid performance on other fronts, with rental deliveries and sales volume both at decade highs.

Columbus rents rose 0.6 percent on a T3 basis through February, to $1,147. Transaction activity remained elevated, with $187 million in multifamily assets already traded by the end of February, hot off last year’s new record figure.

Indianapolis rents grew 0.8 percent on a T3 basis through February to $1,121. Of the market’s nearly 5,000 units under construction, almost 60 percent are expected to be completed by year’s end. Transaction activity in the market is hot off a new record, as $1.1 billion in rental assets traded in 2021.

Rents averaged $1,469 in February, with growth on a T3 basis largely on par with the national rate. Investment volume surpassed $321 million in the first two months of the year, while rental deliveries were also off to a good start in 2022.

Knoxville’s multifamily market fundamentals are improving, capitalizing on the long-lasting appeal of the Sun Belt. Knoxville rents rose 1.1 percent on a T3 basis as of February, nearly twice as fast as the U.S. rate of growth, and other performance metrics were also above trend.

Orange County rents rose 0.9 percent on a T3 basis through February, to $2,614, and occupancy climbed close to the 98 percent mark as of January. Employment growth outperformed the nation for the fifth consecutive month, helping fuel the market’s recovery.

Rent growth in Pittsburgh was just 0.3 percent on a T3 basis through February, reaching $1,266. Occupancy climbed above 96% in January as the construction pace picked up slightly but population continued to decrease. The employment market is in recovery mode but lags U.S. numbers.

Despite a spotty economic recovery, Richmond multifamily is registering a steady comeback. Rents were up 0.4 percent on a T3 basis as of February, not far behind the 0.6 percent U.S. figure. Meanwhile, transactions and development broke new records last year.

Salt Lake City maintained positive momentum, as rents rose 0.9 percent on a T3 basis through February, clocking in at $1,514. Despite the steady performance over the past year, rents are still below the $1,628 U.S. average, fueling in-migration from higher-cost western markets.

Orlando rents averaged $1,683 in January, up 0.8 percent on a T3 basis. Investment reached a new decade high last year, at $5.7 billion, with deliveries also achieving a historic level. Prospects look bright for this year, as well.

Following a decade of fast-paced improvement, Sacramento rents inched up 0.1 percent on a T3 basis as of January, to an average asking rate of $1,874. The Renter-by-Necessity segment drove the market, leading rent gains, occupancy growth and sales activity. Job growth was slow—up 3.8% YoY through November, trailing the U.S. overall.

Rent growth in San Jose cooled off this winter, after a strong rebound during the year’s second half, largely following national trends. The metro’s average rent was $2,832, up 11.3 percent year-over-year and still among the highest asking rents in the U.S.

As the fastest-growing market in the well-performing state of Texas, Austin maintains strong appeal. The metro’s average asking rent was $1,694 as of January, up 0.6 percent on a T3 basis, leading the state as corporate relocations and expansions continue to create growth in well-paying jobs.

Multifamily investment activity doubled year-over-year, achieving record levels in 2021. Meanwhile, deliveries hit a historic low for the metro. Rent growth cooled off during the winter to an overall average of $1,611, with T3 improvement at 0.1 percent as of January.

Texas’ overperforming multifamily market was led by the Dallas-Fort Worth Metroplex. The region led all U.S. markets in both deliveries and transactions. With the average rent still well under the national average, at $1,434 as of January, improvement will likely continue.

Developers completed 2,039 units in 2021, almost doubling 2020. This influx of new supply tempered last summer’s high occupancy rate in stabilized properties, bringing it to 96.9 percent as of December. Rent growth softened during the winter, with the average asking rent of $1,165 leaving plenty of room for improvement.

Following a turbulent decade, the metro posted strong 2021 sales activity, with $10.4 billion in multifamily assets trading. Houston was second among all major markets in inventory expansion, as demand for housing stayed elevated.

San Bernardino and Riverside counties’ notoriously low-volume inventory expansion continued in 2021, leading to tight occupancy, at 97.9% as of December. Although the average asking rent was $2,024 as of January, the Inland Empire is still the most affordable major market in Southern California.

Although lacking the breakneck evolution of gateway or Sun Belt cities, Kansas City’s multifamily market continues to show improving fundamentals amid solid economic growth. Rents were up 7.2 percent year-over-year going into 2022, while occupancy rose 120 basis points over 12 months.

Limited development in Boston pushed up the occupancy rate to 96.5 percent in November, and asking rents rose 0.7 percent on a T3 basis through December, to $2,514. Last year’s transaction volume marked a new high, nearing $3.2 billion.

The Los Angeles multifamily sector performed well in 2021, despite demographic struggles and lagging job recovery. Even so, the metro recorded an average overall asking rent of $2,402 as of December, among the highest asking rents in the nation.

Miami rents grew by 23.5 percent year-over-year through December, with the metro ranking third for rent growth nationally. The average rent hit $2,133, while the U.S. rate clocked in at $1,594. Investors traded $7.4 billion in multifamily assets in 2021, a regional record.

Rent growth in Portland softened to 0.3 percent on a T3 basis through December, reaching $1,635. The job market posted a 6 percent expansion as of October, outperforming the nation by 70 basis points.

Rents averaged $1,493 in December, with growth on a T3 basis almost on par with the U.S. rate. Investment volume hit an all-time high of $3.4 billion last year, while 5,339 units came online.

Strong demand sustained San Diego’s multifamily market, which paired with limited growth pushed asking rents up 1.1 percent on a T3 basis through December, to $2,370, and brought occupancy close to 98 percent in November. Transaction volume marked an all-time high, surpassing $2.7 billion in 2021.

San Francisco’s occupancy rate rose 2 percent in the 12 months ending in November, to 94.6 percent. Meanwhile new inventory marked an all-time high last year as the job market expanded by 5 percent as of October, signaling tailwinds for multifamily ahead.

Although rent growth was minimal, at 0.1 percent on a T3 basis, Seattle rents remained elevated at $2,328 as of December. Meanwhile, multifamily investment rebounded after a slow 2020, with per-unit prices moving up to an average of $372,476.

Tampa’s transaction volume grew in 2021, with $4.6 billion in multifamily investment activity through 12 months. Often a sub-average rental market in the past, Tampa now surpasses national average asking rent with a $1,676 recorded as of December.

Although rent growth decelerated in the fourth quarter, metro D.C. rates advanced 9.7 percent over the last year, with average rents reaching $1,958. Both sales and deliveries were strong.

Rent growth in Atlanta softened to 1.2% on a trailing three-month basis through November, to $1,627, surpassing the $1,590 U.S. average. Stock expansion and transaction activity through November have reached new highs in the metro.

Although easing slightly, Brooklyn’s multifamily market struggles continued, with its rent growth at 0.7% on a trailing three-month basis as of November. With the eviction moratorium set to end in January 2022, the New York City multifamily market is at something of a crossroads.

Rents averaged $1,464 in November, marking a 1.2% improvement on a trailing three-month basis. Transactions surpassed $3.2 billion, already outperforming 2019’s $3.1 billion cycle peak. More than 18,600 units were under construction, with 2022 total deliveries expected to hit a decade high.

Rents averaged $1,689 in November, with growth on a T3 basis at half the U.S. figure. Investments of $2.8 billion nearly double last year’s volume. Nearly 16,500 units were underway, but deliveries hit a five-year low.

Rent growth in Denver softened to 0.7% on a trailing three-month basis through November, to $1,786, following six consecutive months of growth above the 1.5% mark. The employment market rose 6.3% in the 12 months ending in September, recording the fourth consecutive month of expansion.

With rent growth significantly rebounding during the year’s second half following a prolonged downward trend, the borough’s average rent was the still the highest among major markets, at $4,172, up 0.8% on a trailing three-month basis.

Rent growth in Nashville moderated to 1.1% on a trailing three-month basis through November, to $1,508, following six consecutive months of growth around the 2.0% mark. The employment market outperformed the nation, and the transaction volume recorded a new high.

Phoenix rents rose 25.9% on a year-over-year basis through November, to $1,607, leading all major U.S. markets, while the inventory expansion and investment activity marked new peaks. The job market expanded 7.0% in the 12 months ending in September, reaching a full employment recovery.

The borough’s rent growth ended the year on a brighter note than it started, with growth at 1.0% on a trailing three-month basis as of November. Despite lulls in both construction and sales, the average occupancy rate in stabilized assets stood at 98.0%, up 30 basis points since January 2021.

Rents averaged $1,425 in November, marking a 0.5% uptick on a T3 basis. Investor appetite reignited as deals totaled $1.2 billion year-to-date through November, nearly 25% above the 2020 total deal volume. More than 18,000 apartments were under construction, with the bulk of them aimed at high-income residents.

Rents averaged $1,601 in October, up 1.4% on a T3 basis. Multifamily investments hit a record $2.2 billion, nearly 50% higher than last year. Some 4,300 units were under construction, though deliveries are at an historic low.

Detroit rents rose 1.1% on a trailing three-month basis through October, to $1,157, lagging the 1.5% U.S. rate. The job market rose 8.7% in the 12 months ending in August, posting the fourth consecutive month of expansion.

Rents averaged $1,231, up 1.3% on a T3 basis through October. Some 26,000 units were under construction, with deliveries to hit 17,000 by year-end. Transaction volume through October hit $6.8 billion, already a cycle peak.

Rents averaged $1,993 in October, a 1.9% increase on a T3 basis. Transactions totaled $1.9 billion, 81.2% higher than last year. Development slowed, with 2,702 units underway and approximately 1,900 units slated to deliver by year-end.

Following a strong summer, Kansas City’s multifamily market is poised to end the year on a solid note, with rent growth at 0.6% on a trailing three-month basis. Following a year-over-year improvement rate of 7.0%, the metro’s overall average rent reached $1,099 as of October.

Rent growth in Las Vegas was up 2.6% on a trailing three-month basis through October, to $1,437, well above the 1.5% national rate. The job market ranked first among major metros, expanding by 9.1% in the 12 months ending in August.

Orlando rents averaged $1,640 in October, up 2.5% on a T3 basis. Multifamily investment activity intensified, hitting a decade high of $3.6 billion in the first 10 months of the year, while deliveries also reached a historic high as 9,386 units came online.

Metro Philadelphia rents rose 1.2% on a trailing three-month basis as of October, to an above-U.S. average of $1,589. Investment activity in Philadelphia heated up in 2021, with the overall sales volume of the first 10 months of the year already outpacing 2020’s annual total.

Sacramento rents rose 1.4% on a trailing three-month basis, to $1,882, while on an annual basis they rose a robust 15.4% increase. The employment market improved by 3.8% in the 12 months ending in August, the third consecutive month of expansion.

San Jose rents rose 1.2% on a trailing three-month basis through October, to $2,816, sustained primarily by demand for Lifestyle units. That demand also boosted occupancy and supply. The employment market rose 2.5% in the 12 months ending in August, the second consecutive month of expansion.

Austin rents rose 17.7% on a year-over-year basis through September to $1,620, but showed signs of a slowdown on a trailing three-month basis, rising just 2.1%. The employment market expanded by 5.0% in the 12 months ending in July, topping all major markets.

Rents averaged $2,462, up 1.6% on a T3 basis through September. More than 17,000 units were under construction, with deliveries expected to hit 8,600 by year-end. Transactions through September totaled $2 billion, more than during all of 2020.

Rent growth in the Metroplex saw a 1.8% increase on a trailing three-month basis through September, reaching $1,388. The employment market expanded by 3.5% in the 12 months ending in July, and transaction volume reached the highest value of the decade.

As of September, rents rose by 1.1% to $2,328 on a trailing three-month basis, above the $1,558 U.S. average. Year-over-year, rates increased by 7.2%, a welcome improvement among primary markets, where growth is trailing the Southeast and Southwest.

The Triangle seems to have fully recovered from the most recent downturn. As of September, rents had risen by 3.0% to $1,484 on a trailing three-month basis. Transactions totaled $2.4 billion, more than during all of 2020, while deliveries are expected to hit an all-time high of 7,960 units by year-end.

San Diego rents rose 1.8% on a trailing three-month basis through September, to $2,260, outperforming the national rate by 20 basis points. The employment market posted a 1.7% expansion in the 12 months ending in July, marking the first month of positive growth.

Rent growth in the Bay Area marked a 1.2% increase on a trailing three-month basis through September, to $2,640. The employment market trailed the 2.5% national rate, expanding by less than 0.1%, but left negative territory.

Rents in the Puget Sound area rose to $2,046 in September, a 2.0% uptick on a T3 basis and 40 basis points above the national rate. Nearly $2 billion in multifamily deals closed during the first three quarters of the year, and 26,470 apartments were underway as of September.

Rents increased by 2.7% to $1,614 on a trailing three-month basis as of September, above the $1,558 U.S. average. Tampa was also among metros with annual asking rent expansion higher than 20%. Year-over-year, Tampa rents edged up by 22.6%.

Rents increased by 1.2% on a T3 basis through September to $1,952. Transaction volume totaled $3.8 billion during the first nine months of the year, a 4.5% increase over last year. Nearly 40,000 units were under construction, with 7,965 units completed through September.

Indy rents averaged $1,052, a 1.1% increase on a T3 basis through August. Meanwhile construction slowed, with deliveries of fewer than 1,000 units. As investors shifted focus to rent-by-necessity assets, $309 million in transactions was recorded.

Rents rose to $1,325 in August, a 1.7% uptick on a T3 basis, in line with national growth. Nearly $780 million in multifamily transactions closed year-to-date, and around 11,500 units were under construction.

Rents inched up 2.0% on a T3 basis as of August, 30 basis points ahead of the national rate. The average Portland rent was $1,604, above the $1,539 U.S. average. Year-over-year, rents in the metro climbed 11.3% as of August.

Rent growth in St. Louis posted a 1.1% increase on a T3 basis through August to $1,075, sustained by the Lifestyle segment. Employment growth in the 12 months ending in June marked a 0.6% rise, double the 0.3% national rate.

San Antonio rents rose 1.5% on a trailing three-month basis through August to $1,149, boosted by the upscale segment. The employment market posted a 2.8% expansion in the 12 months ending in June, and transaction volume has already surpassed last year.

Cleveland rents rose 0.7% on a T3 basis through August to $1,016, trailing the 1.7% national average but well above pre-pandemic levels. A reported 3,884 units are underway, but new deliveries lag, totaling just 315 units in 2021 through August.

Rent growth in Orange County improved by 1.6% on a T3 basis through August to $2,343, due to rising demand and limited inventory. Investor activity picked up, with deal volume through August surpassing 2020 and 2019 totals.

Salt Lake City’s quick rebound has been propped up by strong demographics, as well as its solid employment market. Rents in the metro were up 1.5% on a T3 basis, slightly below the 1.7% national rate.

The rental market is overperforming in most metrics, with rents up 2.8% on a T3 basis as of August. With the overall average at $1,992, rents are well over the national average, as new residents have poured into the market over the past 12 months.

Following a softer first quarter in rent growth, Albuquerque’s rents rose 1.9% to $1,079 on a trailing three-month basis through July. The job market posted a 3.2% contraction in the 12 months ending in May, improving from the -5.7% rate the month prior.

Rents averaged $1,648 in July, an increase of 1.6% on a T3 basis, in line with national growth. Investment activity hit $1.4 billion, already exceeding last year’s total volume. Construction activity slowed down, with 16,213 units underway.

Benefiting from pandemic-induced migration patterns and economic stimulus payments, Columbus is likely to perform well for the rest of the year. As of July, rents in Franklin County were up 1.0% on a trailing three-month basis and multifamily investment hit $268 million, some 40% above the same period last year.

Rent growth in Denver marked a 2.0% uptick on a trailing three-month basis through July, to $1,715, as deliveries softened despite a robust construction pipeline. Transaction activity remained high and the price per unit rose by 41.0% on a year-over-year basis.

The Northeast Florida metro ranked among leading markets for year-over-year rent growth, with rates up 17.4% in July. On a trailing three-month basis as of July, Jacksonville rents were up 3.1%, to $1,562, slightly above the $1,510 U.S. average.

Knoxville rents rose 1.6% to $1,176 on a trailing three-month basis through July, on par with the U.S. growth rate but below the national average rent of $1,510. Employment growth turned positive, rising 0.6% in the 12 months ending in May, well above the -1.9% U.S. rate.

Rents increased by 2.0% on a T3 basis through July to $1,424, led by Lifestyle sector growth of 2.4%. Construction starts slowed, however 17,000 new units are underway. Year-to-date transactions hit $1.1 billion through July.

Phoenix rents posted the best performance in the U.S., rising 2.3% on a trailing three-month basis through July, to $1,453. Employment marked a 0.1% uptick in the 12 months ending in May, while through July, investment volume nearly matched the 2020 total amount.

Recovery in gateway markets is gaining momentum as people who left cities during the pandemic are making their way back. As of July, rents in Queens were up 2.2% on a trailing three-month basis, to $2,556, well above the $1,510 national average.

On a trailing three-month basis through July, rents grew by 0.5%, averaging $1,381. Investment remained strong, with $522 million in multifamily assets changing hands in the first seven months of the year. Developers already completed 4,232 units and Yardi Matrix expects deliveries to hit 8,355 units this year, which would mark a cycle peak.

Atlanta rents rose 1.9% on a T3 basis through June to $1,484, closing the gap on the national average. The employment market shrunk by just 1.0% in the 12 months ending in May, prompting a positive outlook.

Rents increased by 1.3% on a T3 basis through June to $1,506. Investment activity picked up with $1.1 billion in transactions closed in the first half of 2021, nearly double the same time last year.

Although Brooklyn’s rent growth on a T3 basis through June hit 2.1%, the borough still has a long way to go before full recovery. By mid-year, no community of 50+ units had changed hands and developers had completed just 449 units.

The metro’s swift recovery continues. Investment volume matched 2019’s performance for the first six months of the year and deliveries almost surpassed last year’s total supply additions. On a T3 basis through June, rents improved by 1.9% to $1,338.

Following a brief softening in rent growth, the average rent rose 0.8% on a T3 basis through June to $1,103. Employment growth turned positive, rising 0.3% in the 12 months ending in May, well above the -1.9% national rate.

Rent growth in the Inland Empire remained among the highest in the nation, up 1.7% on a T3 basis through June to $1,843. The job market registered a 0.8% contraction in the 12 months ending in May, outperforming the -1.9% national rate.

On similar footing with other Midwest metros, Kansas City’s rental market continued to improve during the second quarter. As of June, rents were up 0.9% on a T3 basis to $1,058, below the $1,482 U.S. average.

Las Vegas rents rose 1.7% on a T3 basis through June to $1,278, 60 basis points above the national average. The employment market posted a 4.4% contraction in the 12 months ending in May, trailing the -1.9% U.S. rate.

With people gradually returning to urban cores, rent growth in gateway markets is the result. As of June, rents in Manhattan increased 2.2% on a T3 basis, to $3,869, more than double the $1,482 U.S. average.

Rents increased to $1,510, a 1.1% gain on a T3 basis through June. Investment volume picked up as pricing per unit neared $163,000. Deliveries through June topped 2,200 units, with nearly 15,000 more under construction.

Boston’s rent performance turned positive, up by 0.4% on a trailing three-month basis through April to $2,258. However, jobs are down by 9.3% year-over-year through March and will need to pick up to maintain rent recovery. Meanwhile, multifamily development has surged and transactions are on the upswing.

Chicago’s multifamily metrics have started to bounce back. In April, metro rents were up 0.5% on a trailing three-month basis to $1,532, above the $1,417 U.S. average.

As the metro moves through a phased recovery, multifamily rates have also started to bounce back—as of April, rents were up 0.5% on a trailing three-month basis to $1,578, above the $1,417 national average.sure

LA’s multifamily market shows its first positive signs, with rents rising 0.1% on a trailing three-month basis through April to $2,166. But employment still has a long way to go, contracting by 11.5% in the year ending in February.

Gateway markets continued to recover this month, with Miami leading the way. Rents improved by 0.8% on a trailing three-month basis through April to an average of $1,775. And investment activity surpassed $1.4 billion through April 2021, doubling last year’s performance.

Employment is rebounding, particularly in office and logistics, even as the tourism economy struggles. Impacts are shown in rent growth, which hit 0.5% on a T3 basis. Multifamily investment also started 2021 strong.

Strong demographic expansion pressured demand and rents rose 0.9% on a trailing three-month basis through April to $1,316. The employment market shrunk by just 3.7% in the 12 months ending in February, putting the city in a much stronger position than most. Meanwhile, transaction and development remained elevated.

Healthy demand pushed Portland rents up by 0.7% on a T3 basis through April to $1,473, outperforming the U.S. average. But the employment market trailed the nation, contracting by 8.4% in the year ending in February.

Most coastal markets have struggled as the pandemic recedes, but San Diego is faring better. Rent growth on a trailing three-month basis was 0.6% as of April, with the average rent at a strong $2,056. Occupancy has also increased significantly, sitting at 96.2% in stabilized properties as of March.

As with other Sun Belt secondary markets, the Triangle’s multifamily outlook is positive in both the near and long term. Rent growth hit 0.3% on a T3 basis through April, transaction activity has accelerated and deliveries are far surpassing 2020 levels.

Showing signs of improvement, Philadelphia Lifestyle and RBN rents both increased by 0.4% on a trailing three-month basis. Development continued, with more than 13,000 units under construction. Transaction volume, however, has yet to bounce back from its 58.1% drop last year.

Rent growth in Atlanta moderated slightly, but rents still rose 0.3% on a trailing three-month basis through March to $1,378. The employment market contracted by just 3.5% in the 12 months ending in December, outperforming the -6.8% national rate.

Brooklyn rents were up 0.3% on a trailing three-month basis through March, to $2,637. Year-over-year, Brooklyn rates were still down 10.5% as of March, but recent activity points to steady improvement.

Charlotte has continued to be resilient, with rents improving for the third consecutive quarter. On a trailing three-month basis through March, rents rose 0.3% to an average of $1,251.

Las Vegas rents remained among the top three performers nationally, rising by 0.5% on a trailing three-month basis through March to $1,187, 20 basis points above the U.S. average. Investor demand, however, is waning: transaction activity softened, and the per-unit price fell by 38.8% to $113,052.

With 1 million jobs missing from New York City, the boroughs have a long road ahead. As of March, Manhattan rents were down 0.5% to $3,626 on a trailing three-month basis. More than 5,000 new units are also under construction, meaning pressure on pricing is likely to stick around even as the job market improves.

Queens rents were down 0.6% on a trailing three-month basis through March to $2,427. Development has also tanked: the number of completed units in the 12 months ending in March dropped 80.9% to 406 units from the previous 12 months, marking a five-year low.

San Antonio’s robust supply additions and substantial construction pipeline, coupled with pandemic disruptions, kept rent growth flat on a trailing three-month basis through March at $1,056.

Rent growth in St. Louis moderated, rising 0.1% on a trailing three-month basis through March to $1,003. Meanwhile construction activity remains intense, with 4,491 units underway.

The Minneapolis-St. Paul metro has persevered through the pandemic. Both Lifestyle and RBN rents increased by 0.2% on a trailing three-month basis through March. Development continues at a steady pace, with 1,991 units delivered in the first quarter

Albuquerque rents appreciated by 0.3% on a trailing three-month basis and by 6.1% on a year-over-year basis through February to $994. The employment market, at -4.8% in the year ending in December, outperformed the national average by 200 basis points.

Cleveland’s multifamily market has been durable despite economic volatility. Since the onset of the pandemic, rent growth has not slipped into negative territory. On a trailing three-month basis through February, rents rose 0.2% to $980, while the U.S. figure contracted by 0.1% to $1,399.

Columbus rents rose 0.3% to $1,037 on a trailing three-month basis through February. However, COVID-19 has heavily impacted the metro’s employment pool, which contracted by 70,500 positions in 2020, according to federal estimates.

The Indianapolis multifamily market has remained resilient during the pandemic, thanks to demand driven by a supply imbalance in Class A assets. Rents were up 0.3% to $877 on a trailing three-month basis through February.

Rent growth in the metro was consistent through 2020, and the positive momentum carried over into the new year. As of February, rents were up 0.1% to $1,168 on a trailing three-month basis, slightly below the $1,399 national average.

Knoxville rents rose 0.4% to $1,099 on a trailing three-month basis through February, with strong demand for both asset classes. The employment market posted a 2.2% contraction in the 12 months ending in December, substantially outperforming the -6.8% national rate.

Orange County rents rose 0.3% to $2,449 on a trailing three-month basis through February, but the employment market remained sluggish, down 9.4% in the 12 months ending in December. Investment activity resumed, with the per-unit price marking a new high.

Rents increased by 0.3%, with RBN growth leading the pack. Investment volume increased 4.6% to $245 million, as per-unit pricing jumped by nearly 9%. Developers broke ground on 1,100 units in 2020 as deliveries slowed.

A robust recent supply and construction pipeline tempered rent growth in Richmond; it rose 0.3% on a trailing three-month basis through February, to $1,204. The diverse economy aided the employment market, which posted a 4.6% contraction in the year ending in December.

The trend of lower-cost markets outperforming is visible in Salt Lake City. Unemployment is the lowest in the Western region and the metro’s multifamily market has been resilient. At $1,249, the average rent grew 0.4% on a trailing three-month basis through February, 30 basis points above the U.S. rate.

While rent growth rebounded in Austin, its employment market contracted 2.8% year-over-year as of November. The number of apartments added to the market in 2020 was the second highest influx of the decade, and transaction activity also soared.

Baltimore rents were up 0.4% on a trailing three-month basis, to $1,426. However, the pandemic hit the metro’s employment pool hard, causing it to contract by 97,500 positions in 2020, according to federal estimates.

Rent growth marked its fifth consecutive month of appreciation in Dallas, rising 0.2% on a trailing three-month basis through January to $1,225. Employment growth posted a 3.3% contraction in the 12 months ending in November, well above the -7.2% U.S. rate.

Despite the challenges of 2020, multifamily fundamentals held up in Detroit. Steady rent growth persisted, with the rental average reaching $1,052 in December and holding through January.

Houston’s multifamily market is facing challenges, including record low oil prices and the cleanup from February’s harsh winter storm. As of January, rents stayed flat on a trailing three-month basis, at $1,109, behind the $1,466 national average.

Rents increased 0.6%, with “Lifestyle” rent growth at 1.0%. Investment volume dropped by 40 percent in 2020 to $1 billion, but per-unit prices hit a new high. Developers broke ground on some 1,000 units in the second half of 2020.

While rent expansion was consistent in Kansas City throughout 2020, the pandemic’s impacts became visible near year-end and carried over into early 2021. Rents were down 0.2% to $1,008 on a trailing three-month basis as of January.

Ongoing economic volatility continues to challenge Orlando’s multifamily market. For the fifth consecutive quarter, rent movement in Central Florida has trended negative. Rates dropped 0.2% to an average of $1,336.

Rents rose 0.5% on a trailing three-month basis through January to $1,392, ranking Sacramento second for growth among major U.S. metros. Supply additions marked a new high in 2020, while per-unit prices rose by 27%.

San Jose rents continued to slide, down 0.9% on a trailing three-month basis through January to $2,545, and included heavy concessions. The tech-focused employment market posted a 7.4% contraction in the 12 months ending in November.

Rents contracted by 0.5%, with Lifestyle rents dropping 0.7%. Transactions through December totaled $1 billion, a 65% decline from 2019. Developers added 7,128 units in 2020, with 18,167 more units underway.

The market could not avoid rent drops in 2020—it was down 3.0% year-over-year as of December—but there is some relief in sight. Forty of the metro's 97 submarkets saw positive year-over-year rent movement. And deliveries have stayed strong, with 9,458 units delivered last year as demand withstood a population drop.

Rents in the Miami metro were up 0.4% to $1,704 on a trailing three-month basis as of December, well above the $1,462 U.S. average. As the metro weathers pandemic-driven economic hardships, Miami is considered an example of resilience in the face of adversity.

Average rents in Portland slid 0.1% on a trailing three-month basis through December, in line with the U.S. rate. Despite economic damages inflicted by the pandemic, the metro’s multifamily market is well positioned to thrive long-term.

With strong fundamentals mitigating most of last year’s economic shock, the Raleigh-Durham multifamily market is well positioned for a steady recovery. The average rent was down 0.2% on a trailing three-month basis through December, to $1,226. Meanwhile, the national average contracted by 0.1% to $1,462.

Following a bumpy second quarter, San Diego multifamily found a smoother course in the second half of 2020. And while the average rent was down 0.3% last year, both rate growth and development are expected to recover this year.

The Bay Area’s average rents were heavily impacted by pandemic fallout, down 1.1% on a trailing three-month basis as of December. At $2,463, the market still has one of the highest average rents in the nation, and its tech-focused economy has begun its anticipated recovery.

Seattle’s multifamily market ended 2020 in a difficult position. Rents were down 1.1% on a three-month basis through December, to $1,797. However, the figure remained above the $1,465 U.S. average. Rent growth is expected to rebound by the end of this year.

As of December, the metro led the top 30 markets for short-term rent gains. On a trailing three-month basis, rents were up 0.8% to $1,337, just below the $1,462 U.S. average. With an attractive climate and strong long-term prospects, Tampa is slated for further growth.

Washington, D.C., rents were down 0.7% on a trailing three-month basis, to $1,758. Additionally, the metro’s employment market remains rattled, contracting by 181,100 positions (6.1%), in the 12 months ending in November.

Rent growth rebounded in Atlanta, up 0.7% on a trailing three-month basis through November to $1,354. The 6.1% contraction in employment growth over 12 months ending in September placed the metro among the top performers in the nation.

Brooklyn rents were down 2% on a trailing three-month basis, to $2,621. New York City’s employment market took a hit last year, contracting by 15.3%, or 834,500 positions, as of September.

After overcoming the pandemic-propelled economic shock, Charlotte’s multifamily market is now on a recovery path. Overall rents averaged $1,229 in November, growing by 0.5% on a trailing three-month basis, while the U.S. growth rate stayed flat.

Rents contracted by 0.6%, with Lifestyle sector rents dropping 1.1%. Transactions through November totaled $1 billion, a 60% decline compared to the previous year. Development remained underway on 17,500 units, though deliveries fell from 2019’s cycle high.

Denver’s employment market shrank 6.5% in the 12 months ending in September, but with three key sectors adding jobs, it outperformed the 9.3% national contraction rate. Multifamily development and transactions picked up in the third quarter, positioning the city for a strong 2021.

Mirroring gateway market trends, Manhattan is among the most impacted large U.S. metros. As of November, rents were down 1.6% to $3,758 on a trailing three-month basis.

Employment growth marked a 7.7% drop in the 12 months ending in September, outperforming the national rate by 140 basis points. Following a slow second quarter, multifamily transactions and development both picked up in Q3. However, rents shrank back into negative territory.

Phoenix’s remarkable rent performance extended, rising 0.8% on a trailing three-month basis through November to $1,259. Employment growth marked a 4.2% decline in the 12 months ending in September, landing it among the country’s top performers.

Queens has a lengthy rebound phase ahead. As of November, rents were down 1.1% to $2,439 on a trailing three-month basis, but still well above the $1,465 U.S. average.

Rent growth in Minneapolis-St. Paul entered negative territory at the end of the third quarter. On a trailing three-month basis through November, rent growth was down 0.3%, while the national rate stayed flat. Although the rental market is feeling the strain of the pandemic, deliveries forged ahead.

Baltimore rents were up 0.6% on a trailing three-month basis, to $1,406. However, the current health crisis hit the metro’s employment pool hard, causing it to contract by 8.6%, or 115,100 positions, in the 12 months ending in September.

Despite the magnitude of the job losses and the contraction in economic activity, the Cleveland multifamily market has been solid. Rent growth has not slipped to negative territory since February 2018. Rents increased by 0.3% on a trailing three-month basis through October, while the national growth rate was flat.

Detroit’s average rent rose 0.7% on a trailing three-month basis through October to $1,050, outperforming the national improvement rate but trailing the U.S. average. The employment market was among the 10 hardest hit in the country, marking a 14.9% contraction year-over-year as of September.

Rent growth in the Inland Empire led the nation, up 1.2% on a trailing three-month basis through October to $1,669, while the U.S. average stayed flat. Increased demand favored residential development, with 2,393 units delivered and another 2,302 underway as of October.

Despite the economic deceleration, average Kansas City rents improved 0.4% on a trailing three-month basis, following consistent rent growth over the past 24 months. Rents stood at $1,011 as of October, affordable compared to the $1,464 U.S. figure.

Employment in Las Vegas marked a 15.8% decrease year-over-year as of September, well behind the -9.3% U.S. rate. However, the metro’s average rent ranked third highest in the country, rising 1.1% on a trailing three-month basis through October to $1,163.

The metro’s multifamily sector continues to make headway despite economic challenges and new restrictions. As of October, rents were up 0.4% on a trailing three-month basis to $1,424, slightly below the $1,464 U.S. average.

Salt Lake City’s multifamily market has been among the most resilient in the country. Rent gains started to rebound in June, with rates rising 0.5% to $1,229 on a trailing three-month basis through October. Meanwhile, the national growth rate stayed flat.

Rents in San Antonio entered the fourth quarter with an increase of 0.1% on a trailing three-month basis through October to an overall average of $1,049. Meanwhile, job growth was among the top 10 best in the country and deliveries of new apartments surpassed last year’s total.

Rents expanded by 0.3% on a trailing three-month basis, outperforming the U.S. rate. Transactions through October increased to $484 million, a 35% gain compared to the previous year. But development slowed, with only 957 units delivered.