U.S. multifamily market remains strong despite headwinds
SANTA BARBARA, Calif., Nov. 30, 2017 – While U.S. multifamily rents fell in November for the second straight month, rates continued to stabilize at moderate growth levels, according to a survey of 121 markets by Yardi® Matrix.
Average U.S. rents fell $1 to $1,358 during the month, $4 below the all-time high in September 2017. However, the report notes that the year-over-year rate of growth increased to 2.5% nationwide, signaling the market’s overall strength: “Despite the slight dip . . . the overall growth rate remains steady amid headwinds that include a cycle high of new supply, the declining affordability of big coastal metros and a slowdown in technology industry employment growth” in the Pacific Northwest. The report also points to an ongoing construction labor shortage that has delayed projects by an average of four to five months.
Year-over-year rent growth leaders in November were Sacramento, Calif., Las Vegas, Orlando, Fla., California’s Inland Empire and the Twin Cities metro in Minnesota.
View the full November Yardi Matrix report for additional detail and insight into 121 major U.S. real estate markets.
Yardi Matrix is a business development and asset management tool for investment professionals, equity investors, lenders, and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.
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