Multifamily sector stabilizes as growth tapers
The multifamily sector rose from the ashes of the Great Recession as rental growth sprang up in 2011 and 2012, but researchers forecast 2013 will be the year the market starts to stabilize.
Axiometrics Inc. predicts that 2013 will bring a 3.6 percent average rate of rental growth, down slightly from the 3.85 percent growth in 2012.
Gleb Nechayev, senior managing economist at CBRE, attributes continued strength in the sector to improvements in the labor market, combined with the longtime lack of new supply.
Data from Reis Inc. records vacancy rates at 4.3 percent, the lowest levels since fourth quarter 2001.
Markets such as Austin, Minneapolis, Raleigh and San Francisco are starting to meet the average growth of new development.