Ten-X released it’s MultiFamily Market Outlook, revealing construction in the Southeastern U.S., Orlando, Atlanta, and Fort Lauderdale are heating up!
The report cites several important factors leading to a boost in the multifamily rental market. The rise of single headed households, Millennials are delaying getting married and waiting longer to have children, and the huge shift in the appeal of an urban lifestyle. Other factors include, tougher mortgage standards, the financial crises has increased debt damage, student loans, many Millennials feel owning a home is a risky investment and they find the carefree apartment rental lifestyle very appealing.
“We project multifamily rents to continue to increase at a healthy, increasing at an average annual pace of 3.6% through 2018.” according to the Ten-X research.
The long term forecast choose top buy markets based on projected net operating income growth, rent growth, and vacancy improvement.
Orlando is at the top of the list with stellar economic growth.”Apartment vacancies will decline below the national rate despite heavy supply additions. Orlando apartment rents are hitting their best growth of the cycle, soaring 6% from a year ago. Effective rents will continue to see growth above 5% per annum as the market tightens further, prompting similar NOI growth.”
Atlanta came in third on the list with huge NOI gains in store. “Atlanta’s apartment market remains healthy as vacancies continue to tighten to just above 5%, per Reis data. We anticipate vacancies will drop further, but be held in check by anticipated new supply, which is quickly returning to pre-recession levels. We project strong NOI gains of over 4% per year through 2018.
Fort Lauderdale came in fourth on the list, boosted by demographic gains, robust growth, and strong employment. “Rents have been growing steadily, aided by limited availability, and will accelerate as the market tightens through 2018. Low availability and strong rent growth will propel average annual Noi gains in the high 4% range.”
SWET Construction Group has the advanced knowledge of the multi-family housing industry. Contact with any questions or for more information.