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Marcus & Millichap: More MF Development in 2016
Multifamily developers are anticipated to complete 250,000 units this year across the country, according to Marcus & Millichap’s “2016 Multifamily Forecast.” The report notes that the anticipated total will surpass the 250,000 units that were delivered last year.
The forecast also indicates that:
- New rentals were absorbed in substantial numbers last year, which led to a vacancy rate of 4.2%.
- Employers will create 2.6 million jobs this year, above the projected 2.5 million that were created in 2015.
- Plenty of upsides drove capital toward multifamily in 2015, with secondary markets standing out.
- Development will continue to be an option for investors interested in newer properties higher yields, due to lower cap rates for already existing Class A assets.
- Investors will target locations near mass-transit hubs in urban cores.
