Multifamily Flexes its Muscles: 95% Occupancy
Multifamily stats are among the best in the past 20 years: 5% rent growth and 95% occupancy across the country, we learned Tuesday at Bisnow’s Dallas Multifamily Boom event.
Axiometrics SVP Jay Denton (our keynote, between Axiometrics’ Jeff Dowdle and BGO Architects partner Erik Earnshaw) says the multifamily market is in the sixth year of this up cycle. Demand should continue because of job growth that's better than any point since 1999. Plus, Millennials make up the largest adult population in the nation. Dallas ranks ranks 11th (of the top 50 markets) in rent growth, going beyond the 5% the nation is seeing. Jay does think rent growth may slow to 3% to 4% as the single-family home market improves and with new apartment supply coming on line.
While that new supply is cause for concern, Jay says the markets with good job growth have less to worry about. For example, while DC added about the same number of new units as Dallas, it lags in job growth. Dallas' urban core has seen sluggish growth because there are a lot of properties delivering with higher price points even though Millennials aren't moving there. However, those will bounce back as Millennials age and start bringing in more income. (It's the one time you want kids to grow up faster.)