Demand for multifamily rental housing was higher than expected in 2015, absorbing much of the newly completed supply. Therefore, vacancy rates remained low, and rents continued to rise in most markets. As more supply enters the market in 2016, multifamily fundamentals will moderate, more so in some geographic markets than others. 

Here are some key takeaways from the 2016 Multifamily Outlook:

  • The multifamily rental market experienced its strongest post-recession growth in 2015, despite a wave of new supply. 
  • In 2016, new supply of multifamily units will continue to enter the market at levels not seen since the 1980s; meanwhile, plans for additional construction continue to increase. 
  • Multifamily performance at the national level will remain robust into 2016, but some individual markets are starting to moderate. 
  • We stress test multifamily performance based on strong and weak economic forecasts. Our analysis indicates even if economic growth slows down, gross income will continue to grow in nearly all markets, albeit at lower rates compared to the baseline scenario.

Read the report.