Special Report: National Midyear 2019 Apartment Outlook

Apartment Demand Surges to New Peak; Investors Target Widening Range of Opportunities

Midyear, 2019

 
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Sturdy underlying fundamentals continue to support domestic growth, expanding the economy by 2.1 percent in the second quarter, but headwinds are emerging. Growth has moderated over the past several months and some international forces are weighing on momentum, prompting the Fed to cut the overnight rate by 25 basis points at the end of July, in an effort to extend the economic runway.

Report Highlights:

  • The economy remains on solid footing, supported by sustained employment growth

  • Rent control remains at the center of housing discussions, encouraging legislators from a variety of states to propose rent reformation to boost housing affordability

  • Apartment developers are shifting their focus to accommodate older generations who are making the transition to urban life

  • Absorption registered its highest level in nearly 30 years in the second quarter

  • High pricing and tight yields have investors expanding search parameters to include secondary and tertiary markets

Market ReportPeter StandleyMultifamily, Performance