Major metros led the nation in absorbing multifamily units through the first three quarters of 2021
SANTA BARBARA, Calif., Nov. 1, 2021 – After experiencing negative apartment absorption during 2020, gateway metros made a comeback in 2021, according to a new bulletin from Yardi® Matrix.
New York City, Boston, Washington, D.C., Miami, Chicago, Los Angeles and San Francisco absorbed some 108,000 units through the first three quarters of 2021, after posting -7,000 units absorbed in 2020. Absorption is defined as the change in occupied units over time, encompassing move-ins minus move-outs.
Through three quarters in 2021, 475,000 apartment units have been absorbed in the U.S., topping a previous single-year high of 370,000 recorded in 2018 by Matrix. At least 100,000 units have been absorbed in each of the last four quarters, also a first.
The absorption numbers explain the industry’s stellar fundamentals performance. Asking rents nationally were up 11.4% year-over-year through September, while the occupancy rate of stabilized properties rose 110 basis points year-over-year to 95.9% as of August, per Matrix data on 140 markets.
Multifamily absorption is driven by a confluence of factors. Learn more in the latest bulletin.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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