An upbeat outlook for the multifamily sector emerged at the International Builders’ Show.

Despite ongoing challenges, economists speaking at the International Builders’ Show in Orlando, Fla., anticipate a positive 2022 for the apartment sector. “Last year was red hot for multifamily, and we see that trend continuing,” said Dean Schwanke, vice president, multifamily housing, NAHB.

In 2022 NAHB anticipates that multifamily starts, fueled by low vacancies and rising rents, will rise 6.3 percent from 2021 to about 496,000 units. Boosted by stronger multifamily growth, overall housing production is expected to rise 2.5 percent this year to a 1.63 million annual pace. Meanwhile, sales of new single-family homes are projected to total 830,000 in 2022, up 9.3 percent from last year.

Single-family builders and multifamily developers alike will continue to grapple with ongoing building material production bottlenecks and labor shortages that will limit the pace of construction and keep upward pressure on home and rental prices.