Multifamily, with industrial, has been one of the shining parts of commercial real estate since the pandemic turned normal upside down and shook it. The ability to keep driving rent growth has helped push prices up and justified lower cap rates.
But nothing can move one way forever. Research suggests that multifamily rents are moderating while a hot job market still leaves the average person with an income that lags inflation. And when people have to pay more, they often want something of value in return.
That's what Zego's "2022 State of Resident Experience Management Report" found. "Renters are going to see increases for the foreseeable future, albeit, not at such drastic rates," the report noted. "The National Apartment Association projects that annual rent growth will continue rising throughout 2022 but at a moderate pace of 6.3% to 7.0%."
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