Higher Demand for Rental Units Fuels Multifamily Industry
Digested from “Full Speed Ahead for the Apartment Market”
Yardi (1/19/15) Stribling, Dees
Rental growth will likely stagnate or drop as a result of increased supply, despite the higher demand for rental units due to record-low vacancy and homeownership rates in 2014.
In 2014, 238,000 new units hit the marketplace to keep pace with demand, with 210,000 more projected to come online in 2015. California metropolitan areas such as Oakland and San Jose are primed for the greatest growth as a result of strong job, rent and demographic trends, while some previously hot markets, such as Houston, are projected to cool off.
Investor demand also should remain strong in the coming year, thanks to markedly low vacancy rates.