Apartment Housing Demand Remains Strong; Investors Pursue Yield to Broader Range of Markets

Posted on by Randolph Taylor
Randolph Taylor
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Apartment Housing Demand Remains Strong;
Investors Pursue Yield to Broader Range of Markets

The apartment sector notched another healthy quarterly performance as the resounding strength of the employment market sustains demand for rentals. Class B and C units maintained particularly tight vacancy levels, delivering solid rent growth. Markets with elevated construction levels could face pockets of heightened competition as new apartment facilities go through lease-up.
 
■ Although development is elevated, it remains concentrated. Roughly one quarter of apartments slated for delivery this year will come online in only five markets.
■ The United States is on track to achieve multifamily rent growth of 3 percent or better for the ninth consecutive year in 2018.
■ Historically low apartment cap rates have encouraged many buyers to consider a wider range of locations and asset classes in order to reach targeted yields.

 

Randolph Taylor

Randolph is a Multifamily Investment Sales Broker with eXp Commercial servicing Multifamily Buyers and Sellers in the Greater Chicago Area.

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