Freddie Mac Expects Another Strong Year for Multifamily
Solid fundamentals, low interest rates and the nation’s housing shortage should continue to fuel rent growth and originations volume for the remainder of 2019, according to the Freddie Mac Multifamily 2019 Midyear Outlook.
Despite a slow start to the year “as high levels of new supply entered the market,” absorption picked up again in the second quarter, according to the report. As a result, Freddie Mac predicts rent growth will remain modest but healthy at around 4% in 2019 and 3.6% in 2020. New supply will remain elevated over the next few years. However, continued robust demand for apartments will keep vacancy rates relatively low, inching up to 5.2% in 2019.
On the originations side, Freddie Mac forecasts 2019 to be another record year. Volume is expected to increase 8.0% to $336 billion, according to the report. Investors’ continued interest in the multifamily sector and low interest rates should drive this increase in volume.
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