Multifamily Outlook: Second Half 2015
Here are the key takeaways in the 2015 Multifamily Midyear Outlook:
- The multifamily rental housing market started 2015 strong, despite a wave of new supply.
- Multifamily supply will continue to enter the market at elevated levels, reaching the highest level of completions since the 1980s.
- Performance at the national level will remain strong, but for some individual markets increasing supply and low oil prices will impact multifamily fundamentals.
- Net migration patterns among the major markets indicate more domestic movers are attracted to warmer areas with more affordable housing and strong economies, whereas foreign migrants prefer the larger cities.
- The Freddie Mac Multifamily Investment Index has steadily declined over the past few quarters as the growth in multifamily property prices outpaces net operating income (NOI) growth.