Will Multifamily Keep Pace in 2016?
Multifamily market activity reportedly slowed down in the fourth quarter, which has industry researchers and economists wondering if the decline is seasonal, or a sign that markets are perilously close to a cliff.
2015 was a strong year, evident in a few statistical highlights:
• MPF Research pegs average rent growth at 4.8 percent, and occupancy at 95.8 percent
• Reis and Axiometrics reports occupancy in the 95 percent range
• CoStar reports strong transaction sales volume at $150.6-billion, up 16 percent from 2014
Growth in construction deliveries (443,000 units under construction) adds to concern that demand won’t keep pace. It is unlikely markets will be able to sustain occupancy and rent growth at levels seen in recent years, though experts say the sector should maintain growth, albeit at a slower pace in 2016.