Multifamily properties are expected to experience a sharp decline followed by a fast recovery through 2020, according to a report by CBRE.
CBRE's economic advisers predict the multifamily market will reach its bottom in the fourth quarter of 2020 and begin recovery in the first quarter of 2021. Vacancy will rise to 7.2 percent by the end of 2020, which is a full 3.1 percentage points higher than the end of 2021.
CBRE predicts that vacancies will bounce back with a full recovery within one year. Rents are predicted to drop 8.1 percent in 2020 but are also expected to rebound fully by the beginning of 2022. The forecast predicts that the downturn for multifamily properties should be shorter than the downturn experienced by the real estate market during the dot com bubble and the Great Recession.
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Pearl Wu
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