A new market analysis compiled by Yardi® Matrix reports that demand, positive demographic drivers and job growth point to a healthy state of affairs for the U.S. multifamily market.
"We expect U.S. rent growth will remain moderate overall, led by growing Southern and Western metros in which supply growth has not gotten too far ahead of demand," says the report, which can be downloaded here.
Supply deliveries nationwide are beginning to plateau after topping 300,000 in 2016 and 2017. Development has been slowed by construction delays due to worker shortages and rising materials costs. In addition, the report says, "tax cuts will increase income, despite stagnant wage growth," and the Consumer Confidence Index reached an 18-year high in February. The economy has added more than 200,000 jobs per month in 2018.
The market analysis notes that rising interest rates and mildly disappointing first-quarter gross domestic product growth prompt concerns that "the economic cycle is running on fumes," while recent tariffs and rising oil prices add further uncertainty. However, it continues, "underlying U.S. economic fundamentals remain steady," giving rise to a 2.9% rent growth forecast for 2018, slightly above initial forecasts for the year.
Related Stories
Market Data | May 4, 2020
The Los Angeles market continue to lead the U.S. hotel construction pipeline at the close of the first quarter of 2020
Nationally, under construction project counts hit a new all-time high with 1,819 projects with 243,100 rooms.
Market Data | May 1, 2020
Nonresidential construction spending declines in March as pandemic halts projects
Group warns loan threats are hurting relief program.
Market Data | May 1, 2020
6 must reads for the AEC industry today: May 1, 2020
DLR Group completes LA Memorial Coliseum renovation and over 50% of department stores in malls predicted to close by 2021.
Market Data | Apr 30, 2020
5 must reads for the AEC industry today: April 30, 2020
College programs help prepare students for careers in the construction industry and a national movement to cancel May rent takes shape.
Market Data | Apr 30, 2020
The U.S. Hotel Construction pipeline continued to expand year-over-year despite COVID-19 in the first quarter of 2020
Many open or temporarily closed hotels have already begun or are in the planning stages of renovating and repositioning their assets while occupancy is low or non-existent.
Market Data | Apr 29, 2020
5 must reads for the AEC industry today: April 29, 2020
A new Human performance Center and Construction employment declines in 99 metro areas.
Market Data | Apr 29, 2020
Construction employment declines in 99 metro areas in March from 2019
Industry officials call for new state and federal funding to add jobs.
Market Data | Apr 28, 2020
5 must reads for the AEC industry today: April 28, 2020
A virtual 'city-forest' to help solve population density challenges and planning for life in cities after the pandemic.
Market Data | Apr 27, 2020
5 must reads for the AEC industry today: April 27, 2020
Colleges begin building campus eSports arenas and PCL Construction rolls out portable coronavirus testing centers.
Market Data | Apr 24, 2020
6 must reads for the AEC industry today: April 24, 2020
Take a virtual tour of Frank Lloyd Wright's Robie House and Construction Contractor Confidence plummets.