DALLAS-Axiometrics Inc. forecasts that the multifamily sector in many US markets will continue outperforming their long-term averages. Specifically, some of the top-performing larger markets include Phoenix, Houston, Dallas, Atlanta, Charlotte, and Austin. Development in these markets has been strong but is not forecast to significantly impact the market fundamentals. Recovering employment growth has kept demand strong in these markets.

The Dallas-based research company has determined apartment markets' health by analyzing forecast occupancy rate minus long-term average occupancy rate, then plotting this against the forecast average rent growth minus its long-term average rent growth. This rent or occupancy premium is a good indication of the growth momentum of the metro. The larger the positive spread between average forecast occupancy or rent growth and their long-term averages is an indication that the metro area is forecast to outperform the norm for that market during the forecast period.

The above chart visualizes this, while also showing that Boston is forecast to experience rent and occupancy growth over the next five years, while Washington DC will experience weaker growth, due to a new supply of units coming online.