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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