It’s Raining Multifamily
Multifamily is are flooding the market right now, with 750,000 units under construction—the most since the 1980s (though other reports say 1970s)—and CBRE estimates 716,000 of those will be ready for occupancy in the next two years. But property owners and developers still should do well: Even though this will bump up inventory by 4.2 percent, CBRE predicts strong demand in the coming months will temper any major rent slowdowns. It sees rents continuing to grow at about 3.5 percent this year, which is less than the recent double-digit boom times but still robust compared to the historic average of 2.5 percent. And even once this wave is complete, the country will still need 200,000 new units a year to keep up with demand.
