Midwest Q2 Multifamily Market Insights: Vacancies drop and rents rise

Highlights:

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• Multifamily property performance improved in the Midwest in the second quarter with vacancies tightening and rents on the rise.
• The average vacancy in the region dipped 30 basis points to 4.5 percent in the past three months. Year over year, vacancy has dropped 90 basis points.
• Most markets across the region have posted annual rent increases of more than 10 percent. The pace of growth moderated across several markets during the second quarter.
• Investment trends were mixed across the region in the second quarter. Prices are generally higher in 2022 than they were in 2021, and most markets have cap rates around 5 percent. Cap rates will likely trend higher in the second half.

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