Data from the Survey of Market Absorption of Apartments (SOMA), produced by the Census Bureau, suggest continued improvement for the multifamily sector in the first quarter of 2022 due to strong demand and low vacancy rates. However, the decline in the number of apartment and condominium completions in the first quarter of 2022 reflects the ongoing supply chain challenges.
The absorption rate of unfurnished, unsubsidized apartments (the share rented out in the first three months following completion) rose by 5 percentage points to 62 percent in the first quarter of 2022 (from 57 percent in the first quarter of 2021) (Figure 1). Meanwhile, the number of apartments completed was down during this period, from 64,660 units in the first quarter of 2021 to 52,520 units in the first quarter of 2022 (about a 16.0 percent decrease).
The median asking rent for apartments increased from $1,768 in the first quarter of 2021 to $1,832 in the first quarter of 2022 (a 4 percent gain). This is the fifth consecutive quarter with a year-over-year increase in median asking rent price.
The SOMA also provides data on condominium completions and absorption (Figure 2). Condominium absorption increased to 80 percent in the first quarter of 2022 (from 70 percent in the first quarter of 2021). Meanwhile, condominium completions fell from 3,349 in the first quarter of 2021 to 3,174 in the first quarter of 2022.
The median asking sales price of condominiums rose to $682,500 in the first quarter of 2022, 17 percent higher than the asking sales price of $582,600 in the first quarter of 2021.
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