Leaders in the multifamily industry may be just as in the dark as everyone else when it comes to new policy stances on housing, immigration, tax reform, and other issues that could affect the market, but largely the industry is feeling healthy.
That's the new conclusion of an article from NREI, as occupancy should remain high even as demand may weaken slightly. Core markets will likely have the highest competition.
“I hear people talk about ‘uncertainty,’ but when I boil it down to how it will affect the multifamily market, I don’t see any huge change,” says John Sebree, director in the national multihousing group of brokerage firm Marcus & Millichap.
Rents will continue to grow faster than inflation, and the average percentage of occupied apartments will continue to be relatively healthy in 2017. Developers will open more apartments than they did last year, but not enough to push the supply–demand balance to the breaking point. And the new class-A construction is still concentrated in “core” downtown markets, leaving suburban markets and class-B apartment buildings relatively free from competition.