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Multifamily Viewpoints

Mid-Year Housing Outlook: Finding A New Normal

By Steven Guggenmos
Published on July 31, 2014

Multifamily market conditions are strong, with vacancy rates at their lowest level in 13 years, including being below the long-run average for every quarter since the fourth quarter of 2011. We forecast that vacancy will stay below the longer-run average for another year.  As expected in a low vacancy rate environment, rental growth rates are also strong.  But how long can this last?

Some industry watchers expected the good times to last just until supply delivered to the market reaches above a comfort zone of 300,000 units per year, very near the long-run average number.  Starts have reached this level and completions can be expected to follow. So will market softness follow, too? We don’t think so.

For more details, watch our video and read our full outlook.


Steve is senior director of multifamily investments & research
Have a question or comment? Contact Steve


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