Market Trends

In late May of this year, the signs were already rising with the dry hot sun of interest rate increases. With them went the costs of interest rate caps

Coming off a year in which the apartment industry arguably turned in its best performance on record, owners and operators are facing more challenges in 2022.

With the cost of building a home at an all-time high, the dream of homeownership is taking a backseat for many people in America. Renting is at the highest level in half a century, and 43.7 million U.S. households are currently making do in rented apartments.

How strong is the country’s multifamily market? A new study by RentCafe found that 43.7 million U.S. households lived in rentals in 2021. That’s the highest this figure has been in the last 55 years.

This decline in demand is not due to affordability but more so due to “a freeze in new household formation,” for example, roommates separating or children moving out of a parents’ home rather than residents moving from Class A to Class B and Class C or from higher-priced cities to more affordable suburbs.

This summer, for the first time in U.S. history, median rent costs in major cities surpassed $2,000 per month, according to a Redfin report issued in May.