The Multi-family Market
It was a pretty amazing year for multi-family given the lingering pandemic, the surging single-family home market and the emergence of inflation. Vacancy dropped, rent increased significantly, and there was record sales volume. By all metrics it was a strong year driven by a better than expected economy, limited construction, and money. And the money came both in the form of direct aid to renters and, on the investment side, very low interest rates and significant amounts of capital looking for real estate to buy.
The effect of the funds injected into the economy by the federal government cannot be underestimated. Oklahoma received $3.8 billion of PPP funding and $3.0 billion in ARPA funds. This doesn’t count the billions of dollars in direct payments to Oklahomans and the enhanced unemployment benefits. There was sizable amount of CARES Act money that went to renters who couldn’t pay their rent during the pandemic. Some of these payments are still in process. You add to this the eviction moratorium that was in place most of 2021 and rents rising faster than wages. As a result, the multi-family market thrived but did so in an environment that we’ve never experienced before... Read More