National Apartment Market Overview 4Q21

The apartment market lagged the general housing market recovery, but a recovery was gaining momentum by the end of 2021. Demand for smaller high-end projects has been robust in most markets for some time, particularly from downsizers. Investor demand has also increased as domestic investors are attracted by a combination of low interest rates, recent price growth, the prospect of stronger rental growth the next few years and by continued uncertainty about returns for other asset classes. Foreign investor levels have also anecdotally increased, but remain moderate. Stronger apartment demand prospects, combined with moderate supply, are likely to see recovery continue over the next few years.