Skip to main content

Major Apartment Markets Outlook (Q4 2021)

Apartment markets in major coastal cities underperformed the national average in 2021, as they were more heavily impacted by lockdowns and the move of some households to cheaper, sunbelt cities. But as long as Omicron doesn’t throw a spanner in the works with cities now open again that situation will reverse somewhat in 2022, and most cities will catch-up and outperform national average total returns from 2022-26. In particular a strong labour market and less opportunity to work from home in D.C. means total returns there will be just under 7% p.a. from 2022-26. NYC will lag slightly as finance firms revaluate office need and some offices are converted to apartments to meet the demand for larger units. But the main exception is San Francisco, where an exodus of footloose tech workers and growing concerns over crime have cut demand. Total returns there will average under 2% p.a. from 2022-26. In view of the wider interest, we are also sending this US Commercial Property Major Apartment Markets Outlook to clients of our US Housing service.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access