Media
No End in Sight for Strong Demand for Class-A Multifamily Units
May 23, 2022
Developers simply cannot build enough new, luxury apartments to fill existing demand, contributing to double-digit rent increases in many U.S. markets.
This is despite the fact that developers are on pace to finish more luxury apartments in 2022 that they have in decades—but renters are expected to fill them up, even as rents continue to rise. Economists—so far—are also not worried that developers will eventually build more apartments than the current demand calls for. Instead, they worry about how long the U.S. economy will continue to run so hot—creating new households and new demand for housing.
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This is despite the fact that developers are on pace to finish more luxury apartments in 2022 that they have in decades—but renters are expected to fill them up, even as rents continue to rise. Economists—so far—are also not worried that developers will eventually build more apartments than the current demand calls for. Instead, they worry about how long the U.S. economy will continue to run so hot—creating new households and new demand for housing.
