
As we shake the dust of 2016 off our feet, what can we expect the coming year to hold for the multifamily sector? The economy’s steady recovery has increased consumer confidence in the past year, and job growth in many markets helped demand to outstrip supply of multifamily housing, despite continued brisk activity in development and construction. In their latest Trends report, PWC and the Urban Land Institute neatly summarize the current climate for multi-family: A number of factors account for the enduring strength of the apartment sector:
- entry into the job market of the massive millennial generation, who are a prime age cohort for rentals
- consumers’ wariness of for-sale housing product following its massive loss in value during the housing market crash of 2008
- credit issues for consumers, compounded by student debt, and tightened bank requirements for home mortgages
- general consumer preference to remain flexible in their lifestyles, which is facilitated by rental housing.
Robust Markets in the South and West
Fueled by job growth, particularly in the tech sector, multifamily properties in Florida, Texas, and California are particularly attractive to investors. The trends report lists these markets as the top 10 cities for multifamily investment in 2017:- San Antonio
- Ft. Lauderdale
- San Diego
- Miami
- Dallas-Ft. Worth
- Oakland
- San Jose
- Charleston
- Austin
- The Inland Empire (Southern California)