Ten-X (formerly Auction.com), an online real estate marketplace, today released its latest Multifamily Market Outlook report which highlights the sector’s top buy and sell markets. The long-term forecast report, which is based on Q3 2015 current and expected fundamentals, reveals Orlando, Florida, Raleigh-Durham, North Carolina, Fort Lauderdale, Florida, Phoenix and Sacramento, California, as the sector’s top buy markets thanks largely to local economic gains and population inflows. Meanwhile, investors in Northern New Jersey, Philadelphia, Miami, Pittsburgh and Boston might consider selling due to slowing economic outlooks and diminishing employment.
“The overall multifamily sector remains healthy and the trend of renting instead of owning continues across the U.S.,” said Ten-X Chief Economist Peter Muoio. “Despite being six years into its expansion, the demand drivers for multifamily are still in place with no signal of waning in the coming years.”
While Ten-X’s latest Multifamily Market Outlook Report reveals markets investors need to keep their focus on, it also outlines how multifamily construction is heating up as demand drivers are holding strong. Effective rents are up by 4.3 percent nationwide from one year ago, which accounts for an all-time peak. Other multifamily findings in the report include deal volume inching up to $34 billion in Q3 2015 and Q3 cap rates dropping by 20 bps from the prior quarter to 5.8 percent.
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.