New from MPF Research: Top Metros for Demand, Permits and Jobs
MPF Research provides actionable market research to apartment investors and operators. Here’s the latest from RealPage’s multifamily intelligence division.
Top 15 metros for apartment demand in 2Q
National absorption rose to near-record levels in 2nd quarter 2017, easily outpacing completions.
A similar story played out in most major metros, which saw strong demand due to a number of factors. New York led the top 15 markets for demand, while Portland saw the leaderboard’s greatest year-over-year change.
Urban core performance diverges in high-development metros
Across the nation, top development metros are seeing a divergence in urban core performance.
In a new report, MPF Research analyst Brandon Crowell looks at the top 15 markets for construction activity, analyzing supply volumes, demand drivers and pricing power to ultimately rank metro-level performances.
Top secondary markets for rent growth in 2Q
National annual rent growth hit 3.6% in 2nd quarter 2017. While the average 3.7% increase of the top 50 U.S. metros drove much of that growth, many secondary markets held their own – and even outperformed their larger counterparts.
Leading the top 13 secondary markets for pricing power were Reno and Colorado Springs. Each increased annual rents by more than 10.0%.
National permit volumes drop as momentum shifts in some metros
Mixed momentum for market-level authorization volumes translated to a drop in national numbers. The U.S. Census Bureau reports local governments across the country approved 31,633 units during May 2017, a 9.3% decline from a year prior.
For the month, Tampa registered the greatest year-over-year change of the top metros for multifamily permits. The late-recovery market saw authorization activity increase more than 1800%.
In May’s jobs report, New York retakes top spot for growth
Employment numbers picked up slightly in May, with U.S. employers creating more than 2.2 million positions in the year-ending May 2017. That figure grew the country’s employment base 1.6%, according to preliminary data from the Bureau of Labor Statistics.
For the same 12-month period, New York, Dallas and Atlanta led the top 10 metros for job gains. Meanwhile, Boulder registered annual growth near 5.0% to rank #1 on the percent-change leaderboard.
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