Q1 2019 U.S. Multifamily Figures

CBRE, Coldwell Banker Richard Ellis, whose mission is to “provide thoughtful, forward-looking insight into real estate trends, strategies, and opportunities in the U.S. and around the world,” reported that in the first quarter of 2019, the United States multifamily market remained healthy. That is great news for multifamily financial investment performance. There are several focal factors to consider when looking at multifamily market growth, as reflected in the CBRE report:

  • Vacancy Rate: According to Investopedia.com, “Vacancy rate is calculated by taking the number of vacant units, multiplying that number by 100, and dividing that result by the total number of units. The vacancy rate and occupancy rate should add up to 100%.” According to the CBRE report, the overall vacancy rate in multifamily units was down 20 basis points to 4.6%.
  • Rent Growth: Rent growth “climbed to an annual rate of 3%, up from 2.1% a year ago.” Again, in the multifamily sector, this is positive growth.
  • Year Over Year Rent Change: Y-o-Y Rent Change is up 3.0%, indicative of a strong real estate market in the rental branch.

Along with these considerations, the CBRE report brings positive attention to the number of multifamily units completed, the net absorption of these units, and the acquisitions volume. As supported in this CBRE report, Diversified Investors Group, LLC believes that creating investment opportunities in multifamily rental communities is core to our strategy.

Read the full CBRE report here.

Credit CBRE Research

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