New Market Outlook Sees Robust Growth Continuing
The multifamily market’s winning streak will continue for the next few years, we found in our latest research. The Multifamily Outlook Second Half 2015 reports our findings and the details behind them.
Multifamily supply will continue to enter the market at elevated levels, with more deliveries than at any point since the 1980s. Demand has kept pace, soothing concerns that growth might start to slow.
In most markets, vacancy rates rose this year, but less than originally predicted. Rent growth is more mixed across markets and will further disperse as new supply enters the markets. Performance at the national level will remain strong; for some individual markets, however, increasing supply (Washington, D.C., and Austin) and low oil prices (Houston) will affect multifamily fundamentals.
Net migration patterns among the major markets indicate that domestic movers are more attracted to warmer areas with more affordable housing and strong economies, whereas migrants into this country prefer the larger cities.
Something to watch: The Freddie Mac Multifamily Investment Index has slid over the past few quarters – growth in multifamily property prices has outpaced net operating income (NOI) growth.
If you attend the 2015 Freddie Mac Multifamily Customer Conference, you’ll have the opportunity to discover more about the market during my breakout sessions.
Steve is senior director of multifamily investments & research
Have a question or comment? Contact Steve
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