Fundamentals Remain Strong for Multifamily

U.S. Market Overview

The U.S. multifamily sector continues its robust recovery recording the largest quarterly demand in over two decades according to MPF Research. Absorption during the second quarter of 2017 totaled 178,092 units, easily outpacing supply of 86,624 units. On an annual basis, overall occupancy increased by 10 basis points to 96.2 percent with 322,600 units added to the inventory and 281,448 units absorbed. The level of new supply remains elevated by historical standards, posting 132,000 units per year above the average over the past 10 years. Permitting data suggests that this pace of new construction will continue through the balance of the year and into 2018.