Vacancies up, Rents Moderate, but 2015 still Looks Solid for Multifamily

By Jann Swanson

Posted To: MND NewsWire

The multifamily market outperformed many predictions in 2014; vacancy levels, despite a flood of new properties, declined by 10 basis points from 2013 to a 13-year low of 4.2 percent. Revenue per unit rose, continuing the pattern that has led to a 20 percent increase over the last five years. Freddie Mac’s economists are predicting that, while easing a bit from 2014, this year will be another strong one for the sector. Its 2015 Multifamily Outlook projects that demand, driven by the millennial generation, will remain strong but construction of units in buildings with five or more will continue to trend upward so vacancies will rise. Supply, they say, could actually outpace demand this year and the vacancy rate will probably rise by 60 basis points to 4.8 percent by year-end. This however is…(read more)

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