Steve Guggenmos, Multifamily Vice President of research and modeling for Freddie Mac, says the market looks great after an impressive first months of the new year, FX Street reports.
“Started 2016 with good momentum on the heels of a strong year,” Guggenmos says. “This year more multifamily supply will enter the market at a pace not seen since the 1980’s. We expect the multifamily sector to continue to grow at a robust level, with the national vacancy rate staying below the historical average throughout 2016, and ending the year under five percent.”
As a result, rent growth will remain strong as new supply continues to be met with significant demand.
The west coast is expected to see much of the demand, with the exception of New York and Chicago. Austin, Texas and Denver, Colorado are also expected to see demand outpace supply in 2016.