The multifamily sector’s story in 2015 will invert the rent-growth scenario seen earlier in the cycle, says apartment data firm Pierce-Eislen. While rents grew faster for class A “renter by choice” properties a few years ago, this year it will be class B and C properties favored by “renters by necessity” that will have the edge.
The reason, according to Pierce-Eislen, a Yardi Systems company, is the advent of new supply. Although the tally for this year is still projected to come in below the long-term average of 300,000 units, it will affect a handful of submarkets more deeply, and the upper end of the market in particular. Accordingly, class A’s projected rent growth of 4.5% comes in below the predicted 5.1% for B and C properties.
Read more...MF Rent Growth Favors Lower End in '15 - Daily News Article - GlobeSt.com
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