Apts.: ‘More of the Same’ or ‘Change’?

The Inland Empire currently has the highest apartment occupancy rate of any major metro area. (Photo courtesy of the Inland Empire Chamber of Commerce)

SANTA BARBARA, CA—In keeping with the ongoing, and clamorous, Presidential race, Yardi Matrix has framed its latest outlook report for multifamily in terms of whether the current market represents a vote for “more of the same” or for “change.” There are arguments to be made on both sides of the, well, campaign.

“The first few months of 2016 have seen more of the same healthy economic and fundamental drivers that have delineated the multifamily sector in recent years,” according to the Yardi report. Notwithstanding some warts, the US economy continues to be “the envy of the world, producing jobs with moderate GDP growth and low inflation.” These steady gains have represented net positives for the apartment sector, not least of which is the increase in household formation. Year-over-year rent gains reached 6.0% through April despite increasing development, according to Yardi. Multifamily property sales topped $500 billion in 2015, while pricing, especially in core markets, is at an all-time high.