SANTA BARBARA, CA—The wind hasn't left the apartment sector's sails just yet, Yardi Matrix said Thursday. The firm's newly issued US Multifamily Outlook report says the sector will continue seeing growth, “though it will be tepid for the next 18 to 24 months.”
Notwithstanding a continued influx of new supply, “We expect that fundamentals will weaken only slightly in 2018, and thus rents will continue their moderate rate of growth,” the report states. Yardi Matrix says its forecast a 2.5% increase in rents this year is “on par with the rate of growth in 2017.”
Yet that new supply is expected to hit a cyclical high this year, with 360,000 units expected to come on line. This pace of deliveries will outstrip demand and cause the occupancy rate to slide, “albeit slowly,” according to the report.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
