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At the National Multifamily Housing Council’s recent annual meeting, financial corporation Capital One found that several multifamily professionals believe the nation’s political uncertainty may slow activity in the industry in 2019.

Forty-three percent of more than 100 survey respondents view the current political climate as detrimental to apartment activity, with only 28% foreseeing a positive outcome. According to Capital One, this is a drastic change from previous survey results in January 2017, when 73% of professionals said the political climate could benefit the industry overall.

Additionally, this year's survey found that while 70% of respondents feel the economy is approaching the end of its current cycle, apartment pros remain optimistic about industry fundamentals. In fact, 37% of respondents cited strong fundamentals as the biggest positive factor for the sector in the year ahead. Multifamily professionals also named availability of capital and job growth as pluses for 2019.

“Despite the impact of some external pressures and uncertainties, we’re looking at a multifamily industry that's confident in its core fundamentals,” said Jeff Lee, president of Capital One Multifamily Finance, in a press release. “Supply is tracking well with demand, and both buyers and sellers remain optimistic about economic conditions.”

As for the biggest challenge facing the industry this year, nearly half, 48%, of respondents cited rising costs in their markets as their top concern. Rising interest rates were also a worry, among 22%, but that figure is down significantly from the 52% reported in 2017. Lastly, supply–demand imbalances caused respondents the least consternation, at 16%.