More newly built apartments are likely to become available in 2017 than in 2016, given the amount of building that's been under way over the last few years. But it won't be much easier to find an affordable apartment to rent this year in most areas, according to Freddie Mac's Multifamily 2017 Outlook.
Construction of multifamily apartment properties is at its highest level in 30 years, and will remain elevated in many areas across the country in 2017. However, the Outlook points out, demand continues to grow quickly. At the end of 2016, 36.3% of U.S. households were renters, the most in about 50 years. And positive economic conditions will lead more people to form their own households, with the majority becoming renters. As a result, vacancies will remain lower than historical averages.
That's why our forecast is for rents to keep rising in many markets this year, although more slowly than in recent years. The pace will ease the most in some areas that previously experienced the fastest rent growth.
For details on what 2017 might hold for your area and the rest of the country, watch our summary video and read our report.