Overview - Multifamily
At KPRS, we value providing real time data on the construction industry as a resource to our clients to help them build better and smarter. The KPRS Preconstruction Group provides estimates for roughly $3 Bn worth of work on any given year. Roughly a quarter of the work estimated comes from our multifamily group and encompasses market-rate, affordable, senior living, assisted living and hospitality assets.
The multifamily market has held consistent across the United States throughout the pandemic. Although most major urban areas saw an out migration during the peak of the pandemic, other secondary markets thrived as many companies moved to remote/hybrid work models. Since 2021, the multifamily market, especially in urban areas, has been recovering and stable. CBRE reports an optimistic multifamily outlook in the United States as we continue in 2022:
• 300,000 + units projected to be delivered in 2022
• + 95 % forecasted multifamily occupancy rate
• 8% projected growth in urban effective rents in 2022
• $223.18 Bn projected multifamily investment in 2022
Points of Interest
So how is all of this affecting the market?
• Return to urban markets
• Material costs rise through demand
• Increased investments into the multifamily assets
Urban Inward Migration
As urban market traffic returns and businesses report back-to-office plans, the demand for urban infill projects will rise. With increased emphasis on hybrid work models, we’ve seen and are expected to see the following:
• Higher interest in one and two-bedroom units to provide an office setting at home
• Proximity to the office remains a factor to most
• Vacancy rate expected to decrease pre-pandemic levels
