Apartment Demand, Rent Growth Stay Strong
January 3, 2017 | PAUL BUBNY | GlobeSt.com
RICHARDSON, TX—Although multifamily construction is “substantial,” the current development pace is “justified by the very strong demand tallies,” says Greg Willett at RealPage.
“The apartment sector’s winning streak has run seven full years so far,” Willett says.
RICHARDSON, TX—“Rent growth doesn’t have to reach best-ever readings to be strong,” says Greg Willett, chief economist at RealPage. The firm said Tuesday that while rent growth is expected to slow in the near term from the 5%-plus pace set in 2015, cooling to 3.8% in the year that just ended, it’s still well above historical norms.
RealPage says the nation’s 100 largest metro areas saw apartment demand of 328,559 units in 2016, up 24% from the previous year’s net move-in total. Demand recorded for ’16 was the third largest calendar year volume posted during the past three decades, just behind 2000 and 2010.
“The apartment sector’s winning streak has run seven full years so far,” Willett says. “Job production continues at solid levels, encouraging new household formation. While apartment construction is substantial, significant building is justified by the very strong demand tallies,” which last year exceeded deliveries by more than 30,000 units nationwide.
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