Multifamily demand moderated, as evidenced by the 1,342 units absorbed for the year ending Q3 2017, down by 12.0% from this time last year and down by nearly 49% from the 10-year average
The relatively low vacancy rate of 4.2% still decreased slightly from a year ago
New unit deliveries surpassed last year’s levelwith 1,346 units completed for the year ending in Q3, while starts grew 15.2% from the same time last year
The average monthly effective rent of $1,224 increased by 4.5% from the prior year and has increased for 27 consecutive quarters
Acquisitions activity remained elevated but below 2016’s peak; year-to-date $1.1 billion total was 41.1% less than the same time last year; activity in the garden apartment sector (88.5% of the market) fell by 40.5% through Q3, while mid/high-rise assets dropped more suddenly
Cap rates for stabilized infill and suburban assets held firm as private buyers searched for value-add opportunities; multifamily cap rates in the I.E.rank among the nation’s lowest and local professionals expect no change for H2 2017.