Multifamily Midyear Outlook
Record Demand Emanates From Economic Momentum;
Urban Core Recovery in Motion
Job openings unleash household formation. The pandemic disrupted the pipeline of young adults graduating and finding in-office jobs, which typically fuels household creation and apartment demand in the markets where they relocate. Instead, many within this age cohort lived with family or friends during the health crisis. In the first half of 2021, firms accelerated hiring and brought workers into the office, translating to record apartment absorption. This will continue in the second half as young adults fill positions and are provided the financial stability to form their own households. Markets with greater job availability, particularly in fields that graduates are concentrated in, will lure new apartment renters as roles are filled. On a national level, more than 9.2 million jobs were open as of May. According to a LinkedIn study, hiring in the U.S. in June was up nearly 68 percent year over year. A handful of Sunbelt metros including Austin, Nashville, Tampa-St. Petersburg and Charlotte topped the list of employee migration destinations.