Apartment Sector Sluggish in Q1

Preliminary Q1 2018 reports from RealPage, Reis Inc. and Yardi Matrix show muted apartment sector performance on a year-over-year basis. All three research firms pointed out that, while annual effective rent growth did tick up slightly, it is well off the peak reported in 2015-2016.
Occupancy gains were also somewhat moderate, with the reports noting new supply as a culprit.

Noted Reis:

“The apartment market slowed at the end of 2017 – just as the housing market started to take off – and then remained muted in the first quarter as it frequently does in winter months. The momentum, however, should shift a bit in the next quarter or two as the housing market has stalled. These shifts are likely due to the Tax Reform and Jobs Act that doubled the standard deduction and cut the deductibility of state, local and property taxes which lowered the incentive to buy a home.”

For comments, questions or concerns, please contact Amy Sorter