With the U.S. homeownership rate declining to a 19-year low in 2014, the multi-family rental property market continued to outperform inflation, says Marcus & Millichap, the real estate investment brokerage firm that specializes in apartment property sales.
Multi-family market watchers pay particularly close attention to demographic trends, including job growth, wage growth, population growth and new household formation.
Key property performance metrics are vacancy rates and rental rates. Sophisticated operators now track vacancies and adjust rates in real time (as they do in many real estate segments) to make the most of demand.Other highlights from the Marcus & Millichap National Apartment Research Report 2015:
Assessing the investment outlook for multi-family rental properties, Marcus and Millichap notes that “the forces shaping demand in this cycle do not appear to be tailing off, creating and sustaining demand momentum in a period of historically low vacancy rates.
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