According to a new report by Freddie Mac, the U.S. multifamily market will see continued strength in 2018, largely mirroring last year’s performance.
Freddie Mac’s Multifamily Research and Modeling Vice President Steve Guggenmos and Manager Sara Hoffmann find that the moderated growth the market saw in 2017 will continue through 2018. Originations will set another record this year, while rents will keep growing at current levels due to a healthy labor market and continued lifestyle preferences toward renting. Additionally, they forecast that over the next year, completions will peak and supply will increase only slightly faster than demand. While vacancy rates are expected to continue their upward trajectory at the national level and in most metropolitan areas, vacancies in most locations will remain below their historical averages through 2018.