Work crews scurrying about the San Diego Convention Center floor in recent days have been doing more than erecting booths for the apartment industry’s trade show. They've been helping in an effort to achieve the show's first full return to pre-pandemic activity in a reflection of the demand that's boosted apartment owners.

The National Apartment Association’s 2022 Apartmentalize Conference officially opens Wednesday at a time when apartment rents, after a big slump in 2020, have surged beyond where they were in 2019. And inflation and mortgage rates have climbed so much that home sales are slowing and renters are staying put.

But at the same time, those interest rates are also showing some signs of disruption for multifamily properties. Rates are up for investors along with multifamily property prices, offsetting a rise in net operating income, according to the latest apartment investment index from Freddie Mac tracking the 25 largest U.S. metropolitan areas. And the index tracking investment declined 5.3% in the first quarter from the fourth quarter, and it was down 6.1% from last year's first quarter.

Freddie Mac noted that multifamily prices have risen 21% over the past year, with net operating income showing a 19.8% gain, all while mortgage rates have climbed 41 basis points, the largest increase since 2018.

“The offsetting impact of price growth and mortgage rates on increasing net operating income indicate investors are paying more per dollar of income than a year ago,” Steve Guggenmos, vice president of research and modeling at Freddie Mac Multifamily, said in a statement.

He added that “despite seeing dramatic net operating income growth, we are seeing a decline in the index nationally and across all markets suggesting it may be increasingly difficult to find attractive multifamily investment opportunities.”

Property prices rose in all 25 of the biggest metropolitan areas, with Chicago growing the slowest at 4.9% and Phoenix increasing the fastest at 45.6%. Net operating income grew more than 10% in all the markets except for Minneapolis. Orlando, Florida, was the highest, at 33.1%.

NAA's Apartmentalize didn’t take place in 2020 as the convention and meeting business across the country shut down because of the coronavirus. Its 2021 show in Chicago was held in person but was limited and moved to the end of summer instead of its usual June dates because of an increase in coronavirus cases.

For this year, registrations for attendees and exhibitors have been strong, which is expected to put Apartmentalize's attendance on par with 2019, said Robert Pinnegar, NAA’s president, through a spokeswoman. Final numbers won't be released until after the show.

Much of the show focuses on the industry’s nuts and bolts, with suppliers pitching their latest to help property managers attract tenants and better operate their properties.

This year's lineup of keynote speakers has some well-known names. Former Los Angeles Lakers star Earvin “Magic” Johnson was on the bill to address the country Wednesday afternoon.

Johnson has long invested in real estate development and redevelopment that includes residential. He teamed up with Canyon Capital Realty Advisors for the Canyon-Johnson Urban Fund in the late 1990s.

Former professional race car driver Danica Patrick is scheduled to speak on Thursday for a pep talk for leaders. Academy Award-winning actress Nicole Kidman closes out the show with a speech Friday afternoon.