Secondary multifamily markets continue to crack into the top 10

Record absorption year-to-date catapulted Seattle-Tacoma (No. 1) to the top among apartment investment markets over the past six months as strong regional economic growth attracted more young heads of household with a high propensity to rent, according to IPA’s 2019 Midyear Multifamily Investment Forecast.

The resulting robust demand should reaccelerate rent growth, which should then finish the year above the national average. Minneapolis-St. Paul (No. 2) dropped a notch because completions were forecasted above the metro’s historical average. New York City (No. 3) held steady as demand for rental units outpaced supply additions and the market maintained the lowest vacancy rate nationally due to the large gap between renting and owning. Decreased vacancy and above-average rent