New from MPF Research: Top Metros, Inventory Growth, and Population Trends
MPF Research provides actionable market research to apartment investors and operators. Here’s the latest from RealPage’s multifamily intelligence division.
The Nation’s Top Apartment Markets for Inventory Growth, Construction Pipelines
Developers are building properties at a quicker pace than at any time over the past two decades. For the 10 fastest-growing markets, that construction translates to expansion rates above 3.0%.
Charlotte and Nashville landed at the top of the leaderboard, each logging annual net inventory ratios near 6.0% for 1st quarter 2017. Both markets have been investor favorites during the current economic cycle.
Moreover, multifamily development remains aggressive in many places. At the end of 1st quarter 2017, six metros registered construction volumes between 7.0% and 9.6% of total stock.
South, West Metros Lead for Population Growth in 2016
Among the nation’s largest apartment markets, Austin ranked #1 for greatest year-over-year population growth in 2016.
The metro, which experienced growth of 2.9%, has held the leading position since 2011. Austin’s expanding profile reflects a broader, regional trend, with metros in the south and west dominating the remainder of the top 10 list.
In contrast, Chicago and Hartford registered the steepest population declines among major metros. In 2016, both markets saw the population drop 0.3%.
With Mixed Metro Numbers, U.S. Permit Volumes Fall in February
Mixed momentum for metro-by-metro permitting activity resulted in a dip in U.S. figures. During February 2017, national authorization levels fell 25.8% from January 2017 and 18.9% from a year prior.
For the month, Dallas/Fort Worth, New York, and Chicago led the top 10 metros for permitted units. The leaderboard’s greatest year-over-year change belonged to Charlotte, which saw authorizations swell more than 530%.
Meanwhile, year-to-date permitting activity experienced some interesting shifts, with Los Angeles, normally a top-three leader, settling at #8.
For the latest multifamily market insights, visit MPF Research.