2014 Multifamily Outlook
In our 2014 Multifamily Outlook, we observe the following key takeaways:
- Our expectations are for multifamily rent growth and vacancy in the coming year to be consistent with long-run average performance at the national level – slowing a bit from 2013.
- In the past few years, metro level rent growth and vacancies have consistently improved with national averages. Going forward, there will be more dispersion as some metros will continue to improve while others will slow due to varying supply and demand conditions.
- The 25- to 34-year-old age cohort is a key driver of demand for rental housing. Assuming employment conditions return to previous norms, this could add 1.6 million new workers from this cohort.
- Favorable investment conditions persist according to our Freddie Mac Multifamily Investment Index, but have moderated slightly because of increased interest rates.