Apartment occupancy in the U.S has reached a historic level, according to RealPage. The current occupancy for professionally managed apartment buildings is 97.5% as of December.
Jay Parsons, Deputy Chief Economist for RealPage, spoke to Bloomberg about the record-breaking national occupancy. “I don’t think people realize just how crazy that is. Not only is that a record, typically we consider 95 – 96% to be essentially full.”
The continual increase in demand spurs from the lack of supply in the single-family market. The demand is expected to increase rents by an estimated 8% in 2022, according to RealPage. CoStar reports that rents grew by a record-breaking 11% in 2021.
The growing demand has led to an increase in investment capital nationally. According to CoStar, “The pace of investment sales after three quarters points to 2021 nearing the record sales total that was posted in 2019. Investment brokers report high interest for all apartment assets that are in the disposition process. The strong demand for capital placement into the apartment sector has created a highly competitive acquisition environment.”
Now is the time to be investing in multifamily real estate. If you have any questions or want to learn about Metonic’s previous deals, visit our website at Metonic.net or email Josh White at josh@metonic.net.