While the COVID-19 pandemic has hammered many areas of commercial real estate, the multifamily sector has emerged as a clear winner.
Although apartment rents plummeted in the early months of the pandemic, they quickly recovered in early 2021. These rent increases set the stage for an equally robust sales market that drove up the prices of apartment communities. Rent and valuation growth, taken together, create fertile ground for development.
But just because apartments are making money doesn’t mean the year ahead will be easy. Industry executives, particularly on the development side, see a number of challenges and opportunities in the new year.
