Multifamily Deliveries Slow As Of Q3: Here’s What Investors, Operators Need To Know
October 9, 2017 | Champaign Williams | Bisnow.com
Below are three quick multifamily trends to note coming out of Q3, according to data compiled by Yardi Matrix.
1. Rent Growth Deceleration Persists
National multifamily rents ended Q3 flat, advancing only $1 during the summer months, Yardi reports. Though rent growth was strong during July and August, as is expected since many renters renew their leases around this time, that growth stalled in September by 10 basis points month-to-month. That brought rents to an average $1,354 nationwide, down 2.2% year-over-year, according to Yardi Matrix’s monthly survey of 121 markets.
Rent growth peaked in 2015 and has since slowed its pace. Rents rose 2.6% the first three quarters of 2017, 3.4% the first three quarters of 2016 and 4.9% during the same period in 2015.
I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture. For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments. Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients. I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.