Despite uncharacteristically poor performance in 2016 and continued softening projected for this year, experts say there’s a positive outlook for apartment REITs in 2017.

The trusts posted a disappointing 2.86% total return last year, in contrast to the more than 50% growth it posted in 2014 and 2015, and experts are blaming the results on the Fed’s decision to raise up short-term interest rates in December, Urban Land reports. Multifamily is one of the most interest-sensitive sectors, but execs say a slowing supply growth will push up returns over the course of 2017.

Experts are looking at a combination of increased apartment demand (driven by Millennials), robust job growth, and a healthy spread between U.S. Treasury rates and cap rates to benefit multifamily fundamentals amidst increased high-end apartment supply expected for the first half of the year. Urban Land reports experts expect supply growth to drop again toward the end of the year, which could help multifamily REITs make up for any ground lost. [UrbanLand]