![]() This year the cap rate spread has dropped below 3 percent for the first time since the third quarter of 2008. However, cap rates have remained flat over the past 8 quarters – between 5.5 and 5.7 percent. The 10-year Treasury rate continues to move upward, ending the second quarter around 2.9 percent – around 70 bps over the past year. Overall, the multifamily development pipeline is expected to plateau over the next few quarters, with more completions to come. RealPage saw a 5 percent increase so far this year over last year. Census Bureau reported strong multifamily permitting and starts activity during the same period. We expect that pace of growth to slow, but the U.S. CompletionsĬompletions in 5-plus unit dwellings increased 11 percent in the first half of 2018. According to RealPage, apartment absorptions are healthy at the national level, averaging 300,000 units in the past four quarters. About 1 million new households were formed during the first quarter. ![]() This strong market continues to fuel household formations. Unemployment fell to under 4 percent during the first half of 2018. Of course, these dynamics vary across metros but any weakness is expected to be temporary as new units enter the market faster than demand can absorb them. National vacancy rates slowly inched up despite high levels of new supply entering the market. During the first half of this year, the multifamily market performance remained strong.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |