Skip to Content
Skip to Content
October 06, 2015

New Market Outlook Sees Robust Growth Continuing

Steve Guggenmos
Article By
Steve Guggenmos, VP Research & Modeling

The multifamily market’s winning streak will continue for the next few years, we found in our latest research. The Multifamily Outlook Second Half 2015 reports our findings and the details behind them.

Multifamily supply will continue to enter the market at elevated levels, with more deliveries than at any point since the 1980s. Demand has kept pace, soothing concerns that growth might start to slow.

In most markets, vacancy rates rose this year, but less than originally predicted. Rent growth is more mixed across markets and will further disperse as new supply enters the markets. Performance at the national level will remain strong; for some individual markets, however, increasing supply (Washington, D.C., and Austin) and low oil prices (Houston) will affect multifamily fundamentals.

Net migration patterns among the major markets indicate that domestic movers are more attracted to warmer areas with more affordable housing and strong economies, whereas migrants into this country prefer the larger cities.

Something to watch: The Freddie Mac Multifamily Investment Index has slid over the past few quarters – growth in multifamily property prices has outpaced net operating income (NOI) growth.

Learn more about what’s driving the multifamily rental market and where it’s headed. Watch my brief video for a summary of our research findings and read our Outlook for the full picture.

If you attend the 2015 Freddie Mac Multifamily Customer Conference, you’ll have the opportunity to discover more about the market during my breakout sessions.

  • Feedback

    Have a comment or question? Email us to let us know what's on your mind.

    Maximum of 250 characters.

    California residents can review our California Privacy Notice before providing information. For more general Privacy information, view our Privacy Policy.