National Apartment Market Overview 1Q22
Rising interest rates could shift more demand to apartments away from unaffordable detached housing.
- Leigh Warner
- Hollee Hart
While there certainly will remain headwinds for the broader housing market as interest rates rise, a likely shift of demand towards lower price-point apartments and the potential for population growth to surprise to the upside could all exacerbate the medium-term supply/demand imbalance in the market, heighten rental shortages and at a minimum underpin current pricing levels that are still low relative to detached housing.