Despite the pandemic-induced demand for homes in the suburbs and a continued work-from-home culture, optimism continues about the coming three years, though slightly less than a year ago. In this Survey, it is forecast for every market that rental rates will increase faster than the rate of inflation and vacancy rates will fall between now and 2025. Although the continued waves of the pandemic delayed some return to the office, the reopening of city amenities and the creative and social value derived from urban experiences are attractors that are expected to prompt increased multi-family living in urban areas, particularly among younger workers.

Two other factors are also driving new multi-family development—the inland parts of California are experiencing growth in logistics and infrastructure construction and a series of state laws—SB8, SB9 and SB10—have superseded some local building approval processes, opened land currently zoned for single-family homes to the construction of small multi-family structures, and reduced barriers to multi-family construction in transit corridors.