With demand for multifamily housing now exceeding pre-pandemic levels, Freddie Mac Multifamily’s midyear outlook projects rising rents, falling vacancies and a record-setting origination market in 2021. The projection is supported by continued strength across the Sun Belt and Midwestern markets, like Phoenix and Memphis, with larger coastal markets starting to see a slow recovery from the pandemic-driven downturn. With investment activity picking up steam, Freddie Mac now projects that overall multifamily origination volume will continue to rise in the second half of 2021, growing to within the record-setting range of between $385 billion to $410 billion over the full year.
“We believe that the multifamily market will continue to grow in the second half of 2021 as the country and the economy rebuild after the challenges brought on by the COVID-19 pandemic,” said Steve Guggenmos, Freddie Mac’s vice president for multifamily research and modeling. “Larger gateway markets continue to feel the impact of the pandemic, such as New York City and San Francisco, but the majority of markets will continue to see rent growth through the rest of 2021. Underlying demand drivers will support strong multifamily market fundamentals and have set a foundation for continued growth as economic conditions improve.”