Economist To Bisnow: Multifamily Future Looks Bright For The Near Term
Even with "clouds on the horizon"—like vacancies rising two quarters in a row—REIS Chief Economist Victor Calanog tells Bisnow multifamily will continue to rock in 2016.
The asset class had a banner year in 2015, producing a record-breaking nearly $140B in sales on the year. Annual rent growth was up over 4%, stronger than at any time since 2007. Multifamily lending in 2015 saw a major uptick, as well.
"Barring any economic downturn," Victor tells us, "the near term still looks bright for multifamily." Victor says the cloudy parts of the market comes in areas with strong indicators of oversupply.
"Just be wary of neighborhoods with plenty of new buildings coming up," he says, "and over-optimistic projections of income growth in the double digits."