Why Apartment Rents Are SKYROCKETING

We are all seeing it, apartment rents are skyrocketing all across the US. What's the reason behind it, and is it sustainable in the long term?

Mortgage applications (refinance, purchase) are down 55% since May of 2021, mainly as a result of higher interest rates.

The average 30 Year fixed rate mortgage has gone up from 3.2% to 5.8% since the beginning of the year. On a 400k mortgage, that's a whopping $617 dollars extra per month that a person would not have paid in January.

This increase is causing more and more people to opt to rent, which is why rent is skyrocketing now and vacancy is at a 35 year low. New leases are being signed at 19.5% more than the previous residents of the same units.
Multifamily asset values depend mainly on their rental income, which is why Multifamily investors are very well positioned to benefit the most from this.