Multifamily Continues to Rule CRE
August 13, 2019 | Erika Morphy | Globest.com
The multifamily sector showed the most robust growth amongst all CRE sectors—multifamily, office, industrial, retail and hotel—in the first quarter of 2019, according to Ten-X Commercial’s Multifamily Market Outlook.
The first quarter of 2019 marked the first time in five years there was a decline in the number of new rental properties coming to market, according to the report. This decrease helped the multifamily market vacancy rate hold steady in the upper-4% range, the level it’s been since Q3 2018. Yet these figures are relative as the actual number of vacant apartment units remains at its highest since mid-2012, Ten-X reported. As the number of new apartments begins to decline, those on the market will be rented faster.
Construction is expected to scale down next year, causing vacancies to rise to a predicted 5.7% before quickly being absorbed due to the continuing increase of household formations, Ten-X Chief Economist Peter Muoio said in prepared remarks.
