Economy Watch: Apartment Supply, Rents Will Continue to Grow in 2017
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Source: Berkadia, 2017 Market Forecast
Apartments nationwide will enjoy a reasonably strong year in 2017, buoyed by continued employment growth (a rise of more than 2.7 million jobs, or 1.9 percent), Berkadia predicated in its 2017 Market Forecast. The company estimates vacancies nationwide will edge down 20 basis points to 5.1 percent, even as more than 320,600 new units are put on the market.
That’s despite the fact that, encouraged by rising employment in recent years, developers have accelerated multifamily construction. By 2016, apartment deliveries reached a post-recession peak, with 303,760 market-rate units coming online this year, reported Berkadia. The pipeline is still full, however, so in 2017 even more units will be completed, creating another post-recession high: 320,630 units, by the company’s estimate…
Economy Watch: Apartment Supply, Rents Will Continue to Grow in 2017
