Recently, one of the first multifamily reports of the year was released. The January report reveals an optimistic start in January, despite a few numbers lagging behind last year’s results. We share a few highlights in today’s BAM Blog…
To read the Yardi Matrix report in its entirety click here. Overall, the report showed a positive beginning for the year, but cautions that there may be some bumps in the rosy economic weather ahead.
- Although rents saw a decline again in January, year-over-year growth remained solid.
- Yardi notes that rental decline is likely seasonal and may continue until spring.
- Apartment occupancy fell only slightly, to 94.8%.
- The report says we should expect a drop in multifamily supply delivery, nation-wide.
- Phoenix (7.4%) and Las Vegas (5.4%) saw the greatest rent growth.
- BAM’s own Indianapolis came in at number 9 on the list of overall rent growth in all asset classes at close to 4.0%, – above the national average of 3.0%.
- Indianapolis came in at 14th in rent growth for the Lifestyle asset class, at around 3.5% – above the national average of 2.7%.
- Indy came in 12th for rent growth of the Necessity Renter class, at just under 4.0% – above the national average of 3.4%.
- Yardi predicts a busy first and second quarter, but possibly a slowing summer and fall, as political uncertainty around the 2020 election gives rise to caution. They do note that, with a more center-left Democratic candidate, transactions may continue without any slowing.
- The report notes that the economy is showing signs of both growth and slow-down, but say that little expected change should come this year.
- The report points out that although development is slowing, rent growth and occupancy will benefit. They note that fundamentals are strong.
The BAM Bottom Line: According to the first Yardi report of the year, the multifamily market looks to be doing well, and we may see rent growth as we move into spring. Indy also made it into the top 10 for rent growth in all asset classes.
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