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Multifamily Market Fundamentals Strengthen in Q1

U.S. Multifamily | Q1 2022

02 May 2022 1 Minute Read

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Executive Summary

  • The multifamily market set a record four-quarter absorption total of 695,100 units in Q1 2022. For the quarter, absorption totaled 96,500 units—the highest Q1 total since 2000.
  • The overall vacancy rate fell by 20 basis points (bps) quarter-over-quarter and 2.5 percentage points year-over-year to a record-low 2.3%.
  • Average net effective rent increased by 15.5% year-over-year to $2,007 per month. Average rents now exceed their pre-pandemic levels in allbut two of the 69 markets tracked by CBRE (San Francisco and San Jose).
  • New construction deliveries of 66,400 units in Q1 brought the four-quarter total to 292,500—the highest amount since 1987. With more than 400,000 units currently under construction, 2022 deliveries are expected to eclipse 2021.
  • Multifamily investment volume in Q1 increased by 56% year-over-year to $63 billion—the strongest first quarter on record.