{"id":19500,"date":"2018-01-30T05:00:34","date_gmt":"2018-01-30T13:00:34","guid":{"rendered":"https:\/\/www.yardi.com\/blog\/?p=19500"},"modified":"2026-02-22T15:27:44","modified_gmt":"2026-02-22T23:27:44","slug":"looking-up","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/looking-up\/","title":{"rendered":"Looking Up"},"content":{"rendered":"

What does a largely stagnant year for the \"\"<\/a>multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market and supply factors impact the segment?\u00a0 These and other issues comprise the content of \u201cSustainable Pace?\u201d<\/a>, a new market analysis compiled by Yardi Matrix.<\/p>\n

The Yardi Matrix research team\u2019s study suggests that there\u2019s enough steam left in the sector\u2019s bull run to make multifamily a solid, dependable real estate market segment over the next 18 to 24 months for property owners, residents and investors.<\/p>\n

Rent growth cooled in 2017 amid robust development and occupancy levels began to trend down in some metros.\u00a0 On the upside, demand for multifamily shows no signs of slowing in 2018, as the renter cohort ages 20-34 keep growing while retirees continue to downsize.\u00a0 Urbanization and other social trends will also conspire to keep rental demand steady.<\/p>\n

Economy: Bright Prospects<\/strong><\/p>\n

With regard to the national economy, \u201cwe expect another year of moderate economic growth, which potential upside from the recently passed tax reform bill that will lower tax rates and encourage corporate investment,\u201d the report says, adding, \u201cJob growth could slow as the labor market nears full employment, but should remain healthy.\u201d\u00a0 A 17-year high in consumer confidence plus healthy housing, automobile, manufacturing and other segments are additional positive indicators.<\/p>\n

Rent Growth: Modest but Steady<\/strong><\/p>\n

Following multifamily\u2019s significant deceleration in 2017, the report forecasts rent growth in the 2.5% range nationally this year, with increases in supply and lack of affordability in high-cost metros checking growth.\u00a0 \u201cSupply is the biggest headwind,\u201d the report says, forecasting apartment deliveries in 2018 to increase by 20% to 360,000.\u00a0 This new supply will outstrip demand and prompt a slow slide in the occupancy rate.<\/p>\n

Sacramento, Calif., is the projected leader in rent growth in 2018 due to low inventory growth and job market growth.\u00a0 The report predicts high growth rates as well in Colorado Springs, Colo., Phoenix, California\u2019s Inland Empire and Salt Lake City.\u00a0 Metros with the slowest project rent growth are Oklahoma City, Washington, D.C., New Orleans, Portland, Ore., and Baltimore, with New York City expected to be the only major metro to contract due to its fast addition of multifamily units coupled with existing high rents.<\/p>\n

Capital Markets: Safe Haven<\/strong><\/p>\n

On the capital market front, \u201ccapital forces remain robust,\u201d the report says, as debt availability is \u201cas strong as ever, led by Fannie Mae and Freddie Mac, which could hit another year of record lending.\u201d\u00a0 Both equity and debt capital remain abundant in the market, which multifamily \u201cstill a popular investment class due to its sterling performance\u2014the segment has had several years of above-trend rent growth, high occupancy rates and extremely low levels of distress.\u00a0 Even if the rate of growth cools off, multifamily should be a safe investment over the next few years.\u201d\u00a0 Multifamily mortgage debt rose 2.1% through in the third quarter of 2017, up 2.1% year-over-year.\u00a0 Apartment property sales totaled $126.7 billion through November, down 7.8% year-over year from the cycle peak in 2016.<\/p>\n

Learn how real estate investors use Yardi Matrix<\/a> to make quicker, more informed decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"

What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market and supply factors impact the segment?\u00a0 These and other issues comprise the content of \u201cSustainable Pace?\u201d, a new market analysis compiled by Yardi Matrix. The Yardi Matrix research team\u2019s study suggests […]<\/p>\n","protected":false},"author":610,"featured_media":19502,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"yes","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2791,4],"tags":[2273,157,426,29,2272,1169],"class_list":["post-19500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-matrix","category-news","tag-capital-market","tag-economy","tag-housing","tag-multifamily","tag-supply","tag-yardi-matrix"],"acf":[],"yoast_head":"\nYardi Blog<\/title>\n<meta name=\"description\" content=\"What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Looking Up\" \/>\n<meta property=\"og:description\" content=\"What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.yardi.com\/blog\/looking-up\/\" \/>\n<meta property=\"og:site_name\" content=\"Yardi Blog\" \/>\n<meta property=\"article:published_time\" content=\"2018-01-30T13:00:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-22T23:27:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png\" \/>\n\t<meta property=\"og:image:width\" content=\"674\" \/>\n\t<meta property=\"og:image:height\" content=\"872\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Joel Nelson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joel Nelson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.yardi.com\/blog\/looking-up\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/looking-up\/\",\"name\":\"Looking Up - Yardi Corporate Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/looking-up\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/looking-up\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png\",\"datePublished\":\"2018-01-30T13:00:34+00:00\",\"dateModified\":\"2026-02-22T23:27:44+00:00\",\"author\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8\"},\"description\":\"What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market\",\"breadcrumb\":{\"@id\":\"https:\/\/www.yardi.com\/blog\/looking-up\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.yardi.com\/blog\/looking-up\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/looking-up\/#primaryimage\",\"url\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png\",\"contentUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png\",\"width\":674,\"height\":872},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.yardi.com\/blog\/looking-up\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.yardi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Looking Up\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#website\",\"url\":\"https:\/\/www.yardi.com\/blog\/\",\"name\":\"Yardi Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.yardi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8\",\"name\":\"Joel Nelson\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69\",\"contentUrl\":\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69\",\"caption\":\"Joel Nelson\"},\"description\":\"Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor\u2019s degree from Pomona College.\",\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/joel-nelson-aa363113\/\"],\"url\":\"https:\/\/www.yardi.com\/blog\/author\/joel-nelson\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Yardi Blog","description":"What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Looking Up","og_description":"What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market","og_url":"https:\/\/www.yardi.com\/blog\/looking-up\/","og_site_name":"Yardi Blog","article_published_time":"2018-01-30T13:00:34+00:00","article_modified_time":"2026-02-22T23:27:44+00:00","og_image":[{"width":674,"height":872,"url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png","type":"image\/png"}],"author":"Joel Nelson","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Joel Nelson","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.yardi.com\/blog\/looking-up\/","url":"https:\/\/www.yardi.com\/blog\/looking-up\/","name":"Looking Up - Yardi Corporate Blog","isPartOf":{"@id":"https:\/\/www.yardi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.yardi.com\/blog\/looking-up\/#primaryimage"},"image":{"@id":"https:\/\/www.yardi.com\/blog\/looking-up\/#primaryimage"},"thumbnailUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png","datePublished":"2018-01-30T13:00:34+00:00","dateModified":"2026-02-22T23:27:44+00:00","author":{"@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8"},"description":"What does a largely stagnant year for the multifamily industry in 2017 imply for this year?\u00a0 How will economic, tax policy, demographic, capital market","breadcrumb":{"@id":"https:\/\/www.yardi.com\/blog\/looking-up\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.yardi.com\/blog\/looking-up\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/looking-up\/#primaryimage","url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png","contentUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png","width":674,"height":872},{"@type":"BreadcrumbList","@id":"https:\/\/www.yardi.com\/blog\/looking-up\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.yardi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Looking Up"}]},{"@type":"WebSite","@id":"https:\/\/www.yardi.com\/blog\/#website","url":"https:\/\/www.yardi.com\/blog\/","name":"Yardi Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.yardi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/04eb5f3b4bd7f02475913d5982a422c8","name":"Joel Nelson","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.yardi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69","contentUrl":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2026\/02\/JoelNelsonHeadshot.jpg?w=69","caption":"Joel Nelson"},"description":"Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor\u2019s degree from Pomona College.","sameAs":["https:\/\/www.linkedin.com\/in\/joel-nelson-aa363113\/"],"url":"https:\/\/www.yardi.com\/blog\/author\/joel-nelson\/"}]}},"jetpack_featured_media_url":"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2018\/01\/sustainable-pace.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/19500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/users\/610"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/comments?post=19500"}],"version-history":[{"count":4,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/19500\/revisions"}],"predecessor-version":[{"id":19550,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/posts\/19500\/revisions\/19550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media\/19502"}],"wp:attachment":[{"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/media?parent=19500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/categories?post=19500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yardi.com\/blog\/wp-json\/wp\/v2\/tags?post=19500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}