Outlook 2016: The Momentum Continues
The multifamily market accelerated in 2015 and will build on that momentum this year. You’ll find our market analysis and conclusions in our Multifamily Outlook 2016.
Supply will enter the market at the fastest pace since the 1980s and plans for more construction will continue to increase. Strong demand for apartments will absorb most of the new supply. As a result, the national vacancy rate will stay below the historical average throughout the year. In turn, rent growth will remain strong until new supply can catch up with demand.
Across individual markets, gross income growth (average rent adjusted for vacancy) is mixed and will further disperse as new supply comes on-line. Even if economic growth slows, we expect that gross income will continue to grow in nearly all markets, albeit at lower rates.
As for annual industry originations, they will likely go above the $256 billion in 2015 – making 2016 another record year.
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