Data from the Census Bureau’s latest Survey of Market Absorptions of New Multifamily Units (SOMA) indicates that the multifamily market remained strong during the second quarter of 2022 due to high demand. With low single-family housing supply and increased unaffordability of for-sale housing, many would-be buyers have turned to or remained in the multifamily rental market.
The absorption rate of unfurnished, unsubsidized apartments (the share rented out in the first three months following completion) rose by 15 percentage points to 77% in the second quarter of 2022. This is the highest absorption rate since the second quarter of 1997 (80%). The number of completions was up from the first quarter of 2022, from 52,170 to 77,110, while completions were down 8.6% from one year ago.
The median asking rent for apartments increased from $1,683 in the second quarter of 2021 to $1,745 in the second quarter of 2022, a 4% increase over the year. This is the sixth consecutive quarter with a year-over-year increase in the median asking rent price.
The condominium absorption rate (the share purchased in the first three months following completion) decreased from the first quarter of 2022 by 2 percentage points to 77% while condominium completions increased by 68% on a year-over-year basis from 3,158 in the second quarter of 2021 to 5,290 in the second quarter of 2022.
The median asking sales price of condominiums rose to $791,000 in the second quarter of 2022, 113% higher than the median asking sales price of $371,000 in the second quarter of 2021.
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