New from MPF Research: Apartment Occupancy, Employment Growth, and Supply
MPF Research provides actionable market research to apartment investors and operators. Here’s the latest from RealPage’s multifamily intelligence division.
U.S. Apartment Occupancy Drops, Rents Continue to Grow
Multifamily occupancy dropped, especially in the luxury product segment, with a wave of new supply coming online during the colder months when leasing activity is seasonally slow.
A 1st quarter 2017 report draws on data from RealPage’s Axiometrics and MPF Research to evaluate those supply-demand fundamentals.
The new findings also reveal the top 12 metros for pricing power. Sacramento and Seattle lead the regionally diverse rankings, registering respective annual rent growth of 9.8% and 7.9% for the period.
Employment Growth Leaderboard Sees Major Overhaul
U.S. employers added more than 2.3 million jobs in the year ending January 2017, growing the nation’s employment base 1.7%, according to preliminary data from the Bureau of Labor Statistics.
New York and Dallas expectedly saw the greatest actual net gains for the period, with Atlanta trailing closely at #3.
In contrast, January’s metro-level percent-change leaderboard experienced a sweeping shift. While the three frontrunners from the year-ending December 2016 remained intact, the roster was hardly recognizable. Six new markets – including Austin, Charlotte, and Nashville – landed in among the top 10 leaders for job base growth.
Increased Supply Threatens to Derail San Diego’s Stability
The San Diego metro is set to receive its largest count of new units in about 15 years, potentially challenging fundamentals in the traditionally stable apartment market. Will San Diego see multifamily performance take a subsequent hit in 2017? In Apartment Market Dynamics, MPF Research economists discuss how the supply wave could influence the metro.
For the latest multifamily market insights, visit MPF Research.