Multifamily Records Steady Growth
The U.S. multifamily sector, through the midpoint of 2018, continues to record steady growth. Although construction activity remains elevated, occupancy has increased, currently equaling 95.3% according to recent data from Yardi Matrix. Rents have also continued their upward climb, but the growth rate has slowed to a more sustainable pace, more in line with historical averages, of 2.8% year-over-year. Rent growth has been stronger in the “Renter-by-Necessity” (RBN) sector, posting a 3.3% year-over-year increase, while the increasing level of new “Lifestyle” supply has tempered rental growth a bit, which edged up 2.3% year-over-year.