New from MPF Research: Metro Leaders for Inventory Growth, Occupancy Declines and Permits
MPF Research provides actionable apartment market research to apartment investors and operators. Here’s the latest from RealPage’s multifamily intelligence division.
Elevated supply volumes common in markets with largest occupancy declines
In 3rd quarter 2017, 48 of the top 50 metros recorded occupancy rates below the year-earlier level. Among the 10 major markets with the steepest declines, most received more supply than they could absorb.
That high-supply story rang true in Nashville and Salt Lake City, which respectively ranked #1 and #2 for annual occupancy declines during the period.
Southern metros make up most of inventory growth leaders in 3Q
Across the nation’s top markets, peak construction levels translated into inventory growth of 2.1% in the year-ending 3rd quarter 2017, with the 10 fastest-expanding major metros all seeing growth rates of at least 3.5%.
Nashville grew apartment stock 8.0%, or 10,513 units, to rank #1. Meanwhile, Texas markets accounted for much of the remaining leaderboard, with Austin, Dallas, Houston and San Antonio each making the cut.
Austin apartment rents flatten
Following a cooling of rent growth in the first half of 2017, Austin’s pricing power is now essentially non-existent. Annual rent change for all of 3rd quarter 2017 was positive-but-slight at 0.7%.
In a new report, MPF Research analyzes Austin’s supply volumes, class-specific performances and downtown trends.
Multifamily permit volumes decline in September
A cooling of apartment permitting volumes across several major markets translated into a drop-off of national annual authorization totals in September 2017.
For the month, New York returned to #1, bumping Dallas to #3 and lifting Los Angeles to #2. Adding to the shakeup, two metros entered the top 10 standings for multifamily permits.
Meanwhile, on September’s annual leaderboard, six metros reported year-over-year declines.
For the latest multifamily market insights, visit MPF Research.