SANTA BARBARA, CA — A steady national job market and positive demographic trends suggest that the US multifamily market’s long run of consistent performance will continue, according to a new market analysis from Yardi Matrix.
With the occupancy rate of stabilized properties remaining near 95% and wages growing at a reasonable level, “rent gains should remain healthy in most metros” in 2020, the report says. Downsizing baby boomers and household-forming millennials have fueled demand. Yardi Matrix anticipates that new supply will approach 300,000 units this year, led by tech centers and popular lifestyle markets such as Seattle, Denver, Raleigh, NC, and Nashville, TN.
Affordability is a growing problem and high rents are “starting to put a strain on increases in many of the higher-cost metros,” according to the report. Other potential tailwinds include slowing economic growth in Europe and China, trade tensions with Beijing and unrest in the Middle East. But, barring a major shock, “the fundamentals of supply, demand and cost of capital remain very well balanced and indicate continued steady growth for the foreseeable future.”