U.S. Multifamily Market Snapshot — Q2 2021

Q2 2021 U.S. multifamily average effective rent growth finally turned positive, although it remained down year-over-year. The vacancy also improved to 5.3%, driven by strong apartment demand and new household formation.

Investor demand for multifamily properties also stayed elevated. First-half sales volume hit $91.2 billion, on pace to approach 2019’s record high, and property prices increased, according to Real Capital Analytics data. Cap rates improved during the quarter and remained the lowest among major property types.

The economy continued its recovery from the recession, with employment increasing more than expected during July, although job levels and unemployment remained well off pre-pandemic levels.

Here’s a quick look at the U.S. multifamily finance and investment benchmarks for Q2 2021.

For more multifamily market insights, read our latest Small Multifamily Investment Report and check out our other multifamily research.