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Reis: Q4 Multifamily Figures Decline Across the Board
Reis’ preliminary Q4 2019 numbers for the multifamily sector showed decreases in the year-over-year effective and asking rent growth rate, as well as net absorption and new construction. Also decreasing was the vacancy rate, by 0.1%, year over year.
But, Reis analysts indicated there is little to worry about with the figures, as fundamentals remained, and continue to be, healthy. “Demand growth increased in line with supply growth, but rent growth was particularly disappointing at 0.5% (quarter over quarter),” the analysts wrote.
Still, the research firm’s write-up was largely optimistic, pointing out that the economy has improved from the summer of 2019, when the trade war was escalating and concerns arose over the inverted yield curve. The analysts’ outlook is for a “more promising” 2020, with continued healthy demand for apartments.
The one fly in the ointment could be new competition from the housing market, a result of a stronger economy and very low mortgage rates. However, the analysts point out that housing versus apartments isn’t a zero-sum gain. “As long as job growth remains healthy,” the analysts wrote, “the demand for both will stay positive, shoring up home prices and rents, equally.”
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