Institutional Property Advisors (IPA), a division of Marcus & Millichap, has published its Class A Multifamily Outlook Midyear 2023 special report.
“Today’s high barriers to homeownership are helping support demand for high-end apartments, particularly among the millennial demographic,” stated John Sebree, senior vice president and national director of IPA’s multi-housing division.
Reported in IPA’s Class A Multifamily Outlook:
Demand for high-end apartment rentals is outperforming other segments in recent quarters, despite the added competition presented by historic amounts of new supply being delivered.
Class A apartment rent growth has cooled down after historic gains during 2021 and 2022, while home prices and mortgage rates have continued to increase. These divergent trends have made high-end apartments more affordable relative to homeownership.
Millennial homeownership is trending well below previous
