Yardi Matrix seasonal outlook focuses on historic rent growth and healthy absorption, putting 2021 on track to be standout year for investors
SANTA BARBARA, Calif., July 29, 2021 – Yardi® Matrix has released its summer report on the state of the U.S. multifamily industry, and offers a positive forecast for the sector.
“Fueled by robust demand, rent growth came roaring back in the first half of 2020. Some 174,000 units were absorbed nationally through May, which puts 2021 on track to be among the hottest years since the 2008 recession,” states the report. Second-quarter growth put asking rents up 6.3% year-over-year as of June. Gateway markets like San Francisco and New York City, which suffered an exodus of renters and subsequent falling demand last year, are seeing people return with cash in hand for new leases.
Analysts point to the fast-growing economy, fueled by federal stimulus dollars and pent-up consumer demand from the last year. “The huge uptick in savings during the pandemic and federal stimulus, combined with pent-up demand for restaurant, travel and entertainment, has turbocharged growth. Potential headwinds include rising inflation and whether employees can find enough workers,” states the report.
New supply, which dipped only moderately last year, is expected to roar back to about 334,000 units in 2021. Solid growth regions include secondary metros such as Dallas and Phoenix, tertiary metros such as NW Arkansas and Wilmington, N.C., and gateway metros Miami and Boston. However, the rising cost of materials is a potential complication and could lead to a slowdown in starts.
Find the full analysis of the current economic picture, details on employment and inflation, and how it all impacts the multifamily sector in the new National Outlook from Yardi Matrix.
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 [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.