WASHINGTON (2/12/16)--Steady economic growth and a number of other drivers will keep the multifamily market strong throughout 2016, according to Freddie Mac’s most recent Multifamily Outlook. This growth will largely be due to a new supply of multifamily units continuing to enter the market and an increase in plans for additional construction.
"We started 2016 with good momentum on the heels of a strong year," said Steve Guggenmos, Freddie Mac Multifamily’s vice president of research and modeling. "This year more multifamily supply will enter the market at a pace not seen since the 1980s. We expect the multifamily sector to continue to grow at a robust level, with the national vacancy rate staying below the historical average throughout 2016, and ending the year under 5%. As a result, rent growth will remain strong as new supply continues to be met with significant demand."
Other highlights of the report include: