Source: CoStar.com | February 07, 2019
The apartment market’s party was supposed to break up last year after a decade of robust rent growth, falling vacancies and record sales left most experts predicting an inevitable slowdown. It didn’t happen, leaving analysts to watch in 2019 for the effects of too many affluent renters.
“Reports of the end of the multifamily cycle have been greatly exaggerated,” said Michael Cohen, vice president of CoStar’s advisory services in a new video detailing the state of the national apartment market. “This multifamily market keeps surprising, to the upside.”
A resurgent economy kept demand high, as new jobs created more workers looking for rentals. And rising interest rates limited the number of renters moving on to buy their own homes, said Affleck.
The market for Class B and Class C rentals – so-called workforce housing – is likely to remain strong, and popular with both renters and investors. Those renters are unlikely to buy anytime soon.