Growth projection of 4.6% weighs a rebounding economy and overseas fears
SANTA BARBARA, CALIF., Jan. 11, 2016 – U.S. multifamily markets will enjoy moderate growth in 2016—if the domestic economy cooperates and potential hot spots abroad remain calm—according to a new report released by Yardi® Matrix, a business development tool for brokers, sponsors, banks and equity sources that underwrite multifamily investment transactions.
The report, “Winter 2016 Multifamily Outlook: Rent Growth Encore? What’s in Store for 2016,” predicts that increased gross domestic product, moderate growth in apartment supplies, healthy capital markets and 2.5 million new jobs will drive 4.6% growth, outpacing the eight-year average of 2.8%. Flat wage growth and a strong dollar will likely deny a repeat of the 6.5% rent growth recorded in 2015. Other risks include “further economic slowing in China and emerging markets, a recession in Europe, spreading conflict in the Middle East and rising interest rates,” according to the report.
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