The Census Bureau’s latest Survey of Market Absorption of Apartments (SOMA) revealed multifamily improvement during the third quarter of 2021 as a result of strong demand and low vacancy rates, NAHB’s Eye on Housing reports. The absorption rate of unfurnished, unsubsidized apartments surged 25 percentage points in the third quarter to 75 percent, but the total number of apartments completed dropped by roughly 10 percent during the same period.
A drop in supply subsequently pushed the median asking rent 3% higher from $1,638 in the third quarter of 2020 to $1,690 just one year later, marking the third consecutive quarter of year-over-year gains.
Condominium absorption increased to 70 percent in the third quarter of 2021 (from 69 percent in the third quarter of 2020). Meanwhile, condominium completions fell from 5,763 in the third quarter of 2020 to 3,204 in the third quarter of 2021.
The median asking sales price of condominiums increased marginally to $622,600 in the third quarter of 2021, virtually equaling the asking sales price of $622,400 in the third quarter of 2020.
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