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DALLAS—The long-term multifamily forecast reveals the sector remains strong after years of booming growth, but now may be primed for a slowdown after far surpassing its prior cyclical peak, according to Ten-X's latest US apartment market outlook. The outlook also includes the top five buy markets for multifamily real estate assets.
Ten-X indicates Sacramento, Las Vegas, Atlanta, Phoenix and Dallas are the top markets in which investors should consider buying multifamily assets. These regions are being fueled by robust local economies, with a steady influx of new jobs attracting residents still eager to forgo homeownership for the opportunity to rent in a large metropolis.
Employment in Dallas is at an all-time peak following 3.7% growth during the last year, while unemployment sits at 3.5%–more than 100 bps lower than the national rate, says Ten-X. Strong population growth bodes well for the city's economic prospects and has driven multifamily vacancies to a cycle-low of 4.2%. Rents are also measuring the best growth of the cycle and Ten-X projects landlords can expect returns of roughly 4.5% through 2018.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
