2. New Capital and Investment Sources
Given the strong demand fundamentals, Bibby expects both traditional and new capital sources to continue to look with interest at investment opportunities under the multifamily umbrella. However, he says, between the rising costs of land, development and construction and a lot of new product on the market, finding the right multifamily acquisition or development opportunity to fit specific risk and return thresholds may remain difficult.

“Tech investors are increasingly looking at the commercial real estate space,” Bibby says. “Three years ago, there was $459 million in private equity and venture capital funding dedicated to real estate technology, at year-end 2016 there was $2.7 billion. We expect some of this influx to benefit the multifamily sector, advancing operations and performance through all types of tech, including artificial intelligence, smart home technology and more.”

3. Sharing Economy Growing

With the growth of the sharing economy, Bibby says collaboration and community are joining convenience as a core value in development. As he sees it, this shift is chipping away at the divide between public and private space.

“This is requiring apartment communities to begin to rethink community design, programming and integration with the community at large,” Bibby says. “Ride and car-sharing, co-working and home-sharing are all set to leave bigger marks on multifamily development in the years ahead.”