With More Good News Than Bad, Investors Seek to Place Capital Despite Continuing Uneven Recovery.
Increased liquidity, Fed support, favorable demographics buoy the apartment sector despite growing supply and slow wage gains.
While the single-family housing market finally appears to be on the mend, this does not automatically mean less demand for the multifamily sector.
In cities all across America there is a housing boom taking place, but it is not single family homes, it is apartment buildings. The reason… soaring rents.
CoStar analysis shows landlords of apartments within walking distance of rail and bus lines collect higher rents and have higher occupancies than non-transit-oriented properties.
The apartment rental market is a standout due to particularly tight availability and rent increases that far outpace inflation. The metro area with the lowest multifamily vacancy rate is Portland, Ore., with a rate of 2.1%.
Nov 202012
People who are considering home ownership are moving slowly and are probably staying in rental units longer than they’d like…apartments are desirable commodities and landlords can charge more for them.
Over the last year, there has been a slight shift in what weighs more heavily into a renewal decision for multifamily tenants. Believe it or not, tenants care a little less about rental rates and a bit more about property management.
