Multifamily permitting in the first three months of the year averaged 530,000. At this rate, permit totals are on track to exceed 2020 levels.
Multifamily permitting in the first three months of the year averaged 530,000. At this rate, permit totals are on track to exceed 2020 levels.
U.S. multifamily rents continued to decline in the first quarter of 2021, although vacancy rates increased only slightly and remained near historically low levels. Cap rates tightened during the quarter, remaining at historical lows, while property values continued to accelerate higher.
The Q1 2021 Single-Family Rental Investment Trends Report explores SFR market fundamentals and performance metrics to start off the year. Read the full report for exclusive research, trends and insights on the SFR space.
The U.S. multifamily market overall posted rent declines during the first quarter of 2021, as the economy continued to feel the effects of the COVID-19 pandemic. However, bright spots were to be found.
Through first-quarter 2021, smaller metros experienced more cap rate compression for small multifamily properties than larger gateway markets. This trend reflects the migration patterns seen in most of 2020, as many households looked to move out of more urban areas.
The Q1 2021 Small Multifamily Investment Trends Report reveals small multifamily prices rose 2.3% quarter over quarter and 5.5% year over year as the sector begins to show signs of a return to normal. Read the full report for exclusive research and commentary.
The unemployment rate fell to 6.0% in March 2021 as the U.S. labor market added back more than 900,000 jobs and small businesses led the recovery.
Memphis posted the highest multifamily rent growth in the U.S. during 2020, rising 3.8%. Vacancy rates were lower than the national average, as demand outpaced the addition of new supply. Investment activity remained high and cap rates fell to historical lows, as the local economy showed signs of recovery.