The affordable housing sector posted the largest quarterly rent growth since the third quarter of 2019, in a sign Moody's Analytics analyst David Caputo says suggests the sector "might have fully recovered" from the pandemic's effects.

Asking rents hit an average of $986, while the national vacancy rate declined by 0.1% in the second quarter to reach 2.5%. This number is well within the average range Moody's has observed since it began tracking the sector, and Caputo says the firm predicts the rate will stay within that range for the foreseeable future.

Affordable housing inventory grew by an average of 0.4%, with 4,506 new completions hitting the market nationally. Moody's estimates 2021 will finish strong with 40,000 completions, "right in line with years past."  Meanwhile, Caputo predicts average rents will increase to $996.