LOS ANGELES—A steady US economy and net positives in the multifamily sector are keeping prices in the core markets high. And the consensus is that demographics will continue to keep demand for apartments strong. But will apartments continue to ride the wave of these trends for the foreseeable future, or will the momentum abate as the uncertainties—including wage growth, overbuilding and global factors—come into sharper focus?
Expert panelists at RealShare Apartments, a national two-day event at the Westin Bonaventure in Los Angeles, took on those questions and the consensus was that strong apartment demand will continue.
Gary Goodman, SVP of acquisitions at Passco Cos., explained that there is a lot of catching up to do in terms of apartment delivery to keep up with demand. Passco, who buys in secondary and tertiary markets, says they do so because of the job to permit ratio. “We like the right to work states… cap rates are much more attractive,” he said.
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