In its latest outlook report for the multifamily rental market, Yardi Matrix outlined several reasons for hope for a solid recovery for the multifamily housing sector in 2021, especially during the second half of the year.
While multifamily owners, developers, and property managers collectively braced for severe drops in rent growth, construction starts, project completions, and availability of capital amid the COVID-19 pandemic, the drastic declines never materialized.
Rent growth did take a step back in select markets, especially in "high-cost gateway" metros like San Jose (-13.7%) and San Francisco (-9.4%), as renters continued to leave pricey urban neighborhoods for less-dense, cheaper suburban areas.
But on the flip side, "many tertiary and tech hub markets have benefited from migration out of the gateways," wrote the authors of the Yardi Matrix report. Secondary and tech markets like the Inland Empire, Sacramento, Tampa, and Las Vegas all saw solid rent growth in 2020.
Multifamily construction pipeline for 2021
Other than the temporary shutdowns of work sites during the pandemic, construction work on multifamily housing developments continued to hum along through 2020 and into 2021. In all, 285,000 multifamily units were delivered throughout U.S. markets in 2020, down about 7% from 2019, but not nearly as severe a drop as many had predicted.
According to Yardi Matrix, the multifamily sector has a "robust pipeline" of new projects, with some 765,000 units in some stage of construction as of early 2021. This "should keep deliveries above that 300,000 mark for the next few years." The firm projects 327,718 units will be delivered in 2021.
Here are the top 25 multifamily markets for 2021 (total number of construction completions, % growth in completions YOY):
1. Dallas: 22,909 completions (+12.1% YOY)
2. Miami: 16,262 (+66.3%)
3. Washington, D.C.: 14,541 (+50.5%)
4. Houston: 11,500 (-3.1%)
5. Los Angeles: 11,296 (+16.5%)
6. Atlanta: 10,939 (+9.7%)
7. Austin: 10,301 (-10.0%)
8. Seattle: 9,816 (+29.9%)
9. Phoenix: 9,334 (+13.6%)
10. Denver: 8,653 (-29.7%)
11. Boston: 8,449 (+20.8%)
12. Chicago: 7,797 (+0.8%)
13. New York City: 7,335 (+24.2%)
14. San Francisco: 7,166 (+64.8%)
15. Twin Cities: 6,760 (+4.9%)
16. Charlotte: 6,692 (+55.3%)
17. Orlando: 6,662 (+21.5%)
18. Philadelphia: 6,071 (+27.7%)
19. Nashville: 5,457 (+41.1%)
20. Tampa–St. Petersburg: 5,103 (+20.1%)
21. San Antonio: 4,960 (-6.5%)
22. New Jersey–Northern: 4,955 (+29.9%)
23. Salt Lake City: 4,633 (-0.6%)
24. Louisville: 4,484 (+215.6%)
25. White Plains: 4,464 (+199.6%)
DOWNLOAD THE FULL REPORT
Related Stories
Coronavirus | May 20, 2022
Center for Green Schools says U.S. schools need more support to fight COVID-19
The Center for Green Schools at the U.S. Green Building Council released a new report detailing how school districts around the country have managed air quality within their buildings during the second year of the COVID-19 pandemic.
Regulations | May 20, 2022
Biden’s Clean Air in Buildings Challenge aims to reduce COVID-19 spread
The Biden Administration recently launched the Clean Air in Buildings Challenge that calls on all building owners and operators, schools, colleges and universities, and organizations to adopt strategies to improve indoor air quality in their buildings and reduce the spread of COVID-19.
Building Team | May 20, 2022
Caltech breaks ground on a new center to study climate and sustainability
The California Institute of Technology (Caltech) recently broke ground on its Resnick Sustainability Resource Center.
Laboratories | May 20, 2022
Brutalist former Berkeley Art Museum transformed into modern life science lab
After extensive renovation and an addition, the former Berkeley Art Museum and Pacific Film Archive at the University of California, Berkeley campus reopened in May 2022 as a modern life science lab building.
Sports and Recreational Facilities | May 19, 2022
Northern Arizona University opens a new training center for its student athletes
In Flagstaff, Ariz. Northern Arizona University (NAU) has opened its new Student-Athlete High Performance Center.
Energy-Efficient Design | May 19, 2022
Shipping containers used to build Research Triangle Park’s first community gathering space
Shipping containers were the prominent building material used to construct Boxyard RTP, the first public community and gathering place in North Carolina’s Research Triangle Park (RTP).
Mixed-Use | May 19, 2022
Seattle-area project will turn mall into residential neighborhood
A recently unveiled plan will transform a 463,000 sf mall into a mixed-use destination site in the Seattle suburb of Bellevue, Wash.
Architects | May 19, 2022
The art and trade of architectural photography, with Brad Feinknopf
Longtime architectural photographer Brad Feinknopf discusses his craft and helping AEC firms realize their visions photographically. Feinknopf also touches on the evolution of photo shoots and the role of technology in architectural photography.
Codes and Standards | May 19, 2022
JLL launches non-profit aiming to mitigate climate change
Real estate and investment management firm JLL recently launched JLL Foundation, a non-profit dedicated to making a long-term impact on environmental sustainability.
Office Buildings | May 19, 2022
JLL releases its 2022 Office Fit Out Guide
JLL’s 2022 Office Fit Out Guide report provides benchmark costs to build out a range of office types across major markets in the United States and Canada.
