Multifamily Developers Try to Keep Pace with Demand
Developers are rushing to start construction on new apartments—and so far, the demand for new apartments seems likely to stay high enough to fill them. Occupancy rates remain strong and rents are rising quickly for rental apartments.
“Investors continue to fund new developments, and we’re likely to see another sizable increase in starts in 2022.” Many apartment developments that start construction today are likely to be leasing units within a year or two. Those apartments should continue to benefit from strong demand from renters.
This year, Dodge Data & Analytics Supply Track, estimates more than 600,000 units will be delivered, although it’s possible further disruptions could delay some units.
With demand outstripping supply, rents are rising quickly.
Developers will also open a greater number of new apartments in 2022. Many will finally open projects that had been delayed in 2021. “2022 is on track to be the biggest year since the mid-1980s for new supply,” says Parsons.
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