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Multifamily Market Trajectory in U.S. to Continue in 2018

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.

Read more from World Property Journal

Exclusive Research Reveals Stable Outlook for the Multifamily Sector

Capital is continuing to flow to the multifamily sector. Despite concerns that the real estate cycle is peaking—and with high levels of multifamily construction in some metros—fundamentals have steadily improved and investment sales remain robust. Exclusive research conducted by NREI indicates that the market is likely to stay that course for at least another 12 months.

Apartments remain a favored property type among commercial real estate investors. When asked to rate the attractiveness of the different core property types on a scale of 1 to 10, survey respondents scored multifamily the highest at 7.9, but the score on industrial properties continues to gain ground. It now stands at 7.5. Hotels and office assets both scored at 5.9, while retail’s score has crashed to 4.5.

Read more from National Real Estate Investor

6 Ways Millennials Are Influencing The Multifamily Market Of The Future

As the largest living generation in the U.S., millennials play a major role in shaping multifamily real estate trends.

From apartment design and amenities selected, to the size of the units and the technology incorporated within them, this generation, which is anticipated to reach 70 million by 2024, is certain to influence housing stock across the country.

Read more from Bisnow

Peaking Rents, Record Supply May Spur A Multifamily Asset Selloff In These Five Markets

There remains a large disparity between the luxury apartments being constructed and the working-class Americans in need of affordable apartments.  This divide is driving companies and renters from expensive core markets with inflated rents like San Francisco and New York to more financially manageable areas, and the migration is not going unnoticed by investors.

Read more from Bisnow