Multifamily Housing Market in 2019

Checkout a summary of 2019 trends in Multifamily Housing Markets…

In Freddie Mac’s Multifamily research, they found that “performance in the multifamily market remained healthy during 2018, despite high levels of new supply entering the market. We expect this trend to continue into 2019, but with more modest growth in comparison to recent years.”

2018 ended up with solid rent growth and only modest increases in vacancy rates despite an elevated level of new supply. There are some weakness’s in individual markets and submarkets.

New supply will remain elevated through 2019 and into 2020 but rents and vacancies will continue outperforming historical averages due to robust demand related to the rising cost of homeownership, changing demographics and consumer preferences.”

Cap rates have slightly fallen over the past couple quarters but they expect cap rates to rise in 2019 if Treasury rates increase.

“Multifamily origination volume is projected to grow to $317 billion in 2019 driven by solid market fundamentals and strong investor demand for multifamily properties.” This figure exceeds 2018’s statistic by 3.9 percent.multi-use developers, multi-use development, investors, real estate professionals, commercial real estate news, commercial real estate trends, trends in real estate, development trends, commercial real estate, development in Kansas City, Environmental consulting help Kansas City, Environmental consulting help Missouri, efficiency, Engineering consulting Kansas City, Phase I Environmental Consulting, Phase 1 Environmental Consulting, Phase II Environmental Consulting, Phase 2 Environmental Consulting, property condition assessments, property condition assessments Kansas City, PCA's, PCAIn conclusion, “we expect 2019 to be another strong year for the multifamily industry. Homeownership affordability constraints and consumer trends will continue to drive demand, while strong rent growth will support property price growth.”

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