With so many new apartment buildings being built, why is the market still so tight? How long will this go on? Freddie Mac’s Multifamily Outlook Second Half 2015 answers these questions.
More multifamily rental properties are entering the market now than at any time since the 1980s. Given how tight the market has been, the new apartments are being rented quickly. Vacancy rates remain at a 14-year low and rents keep climbing.
Demand from renters will stay high, thanks to an improving economy and job market – plus more people setting up their own households, especially Millennials and immigrants. So will the volume of new properties coming on-line help ease the pinch that many renters feel? Nationally, it looks like more supply is needed. Across markets, the conditions vary.
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