A new market analysis compiled by Yardi® Matrix reports that demand, positive demographic drivers and job growth point to a healthy state of affairs for the U.S. multifamily market.
"We expect U.S. rent growth will remain moderate overall, led by growing Southern and Western metros in which supply growth has not gotten too far ahead of demand," says the report, which can be downloaded here.
Supply deliveries nationwide are beginning to plateau after topping 300,000 in 2016 and 2017. Development has been slowed by construction delays due to worker shortages and rising materials costs. In addition, the report says, "tax cuts will increase income, despite stagnant wage growth," and the Consumer Confidence Index reached an 18-year high in February. The economy has added more than 200,000 jobs per month in 2018.
The market analysis notes that rising interest rates and mildly disappointing first-quarter gross domestic product growth prompt concerns that "the economic cycle is running on fumes," while recent tariffs and rising oil prices add further uncertainty. However, it continues, "underlying U.S. economic fundamentals remain steady," giving rise to a 2.9% rent growth forecast for 2018, slightly above initial forecasts for the year.
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