Apartment demand will likely remain robust and rent growth remain elevated in 2022, given the current rates of absorption, rising mortgage rates in 2022, and the lower level of construction activity relative to current demand, according to National Association of Realtors blogger Scholastica (Gay) Cororaton.

Demand for multifamily apartments remains strong so far in the fourth quarter, as of Oct. 19, with a net increase of 1.06 million apartment units occupied since Q2 2020. The multifamily vacancy rate has fallen to 4.6% (6.6% in Q2 2020) and the multifamily median asking rent is up 11.4% year-over-year (1.6% in Q2 2020).

Texas has the top two markets with the largest number of apartment units absorbed – Dallas (47,182) and Houston (37,117) – each of which absorbed an amount that was about 6% of the stock of apartment units.