Despite the slowest population growth rate in 70 years, the US apartment sector remains healthy throughout most of the country, according to the recent Multifamily Market Commentary released by Fannie Mae. In the national development 386,000 new units were underway as of Q2 2014.
Growth indicators from the National Association of Home Builders (NAHB) show that 9.6 percent of the $331 billion of new housing built in 2013 was multifamily construction. According to housing consultant IBISWorld Inc., multifamily development will reach a 28 percent annual average rate increase since 2009, with California blazing ahead due to a 47 percent growth rate in 2012 and 20 percent in 2013.
Although apartment market fundamentals remain positive, this veritable apartment market boom is leading some to question how long the growth rate can be sustained.
Read more...Multifamily Market Report | The Balance Sheet - Yardi Corporate Blog