NKF, Yardi Reports: U.S. Multifamily Market Remarkably Consistent, Remains Top Investment Class
New research by Yardi Matrix and NKF reveal a host of interesting trends within the multifamily sector. Not only has the U.S. multifamily industry exhibited remarkable consistency, it remains a darling asset class for investors.
Rents increased by $5 in April 2019, as robust job creation continued to drive absorption of about 300,000 new units per year, reports Yardi Matrix. The average rent increase represents year-over-year and year-to-date growth of 3% and 0.8%, respectively.
NKF’s first quarter report showed annual effective rent growth increased 10 basis points to 3%, led by above-average growth in Las Vegas, Phoenix, Orlando, Jacksonville and Tampa. Rent growth was particularly strong in the Class B space, which increased 3.4% year-over-year.
Meanwhile, on the investment front, NKF says investment sales volume totaled $36.4 billion in Q1 2019, up 1.3% year-over-year, with more than 70% invested in non-major markets. Trailing 12-month sales volume rose 8.1% to $175.2 billion. NKF writes, Q1 2019 marks the eighth consecutive quarter in which multifamily represented the highest sales volume of all property types.
NKF researchers indicate cap rates decreased 2 basis points quarter-over-quarter to 5.39% nationally, with major markets increasing 3 basis points and non-major markets decreasing 7 basis points. Yields between major markets and non-major markets compressed to 85 basis points, representing the tightest spread since Q1 2013, according to NKF.
Researchers at Yardi Matrix write in the report, “With the prime rent growth season just starting, it remains to be seen whether this year’s gains will be stellar or merely average, but in any event there seems to be no reason to think the multifamily juggernaut is going to hit the pause button.”
Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services.
In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company.
In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix.
Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator.
Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements.
Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.