In Q1 2021, the US multifamily market stabilized a quarter earlier than expected, according to a new report from CBRE.

While vacancy rose by 20 basis points to 4.7% in the quarter, the average rent rose 0.4%. That was the first quarterly rent increase since the pandemic began. Still, the average rent was down 4.2%, and vacancy was up 50 basis points compared to a year ago.

CBRE says Q1's results provide a solid springboard for recovery. With widespread vaccinations, additional stimulus, an improving economy and the return of office workers, that recovery should accelerate as 2021 continues. Those tailwinds are likely to strengthen apartments in Class A, gateway markets and the urban core—all of which struggled during the pandemic.

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Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.