July Multifamily Update

While the multifamily market remains strong, it seems that supply is catching up quite a bit with demand in part of the market. According to National Multifamily Housing Council’s most recent quarterly survey, Market Tightness has remained unchanged for the third quarter in a row. More than half of respondents of the survey reported no perceived change in market conditions as of this last quarter. According to CP Executive, 54% of respondents also consider property prices to be “frothy,” meaning that investors will be satisfied if current market trends persists.

According to our friends at ABODO, vacancy rates are at their lowest rate in 30 years. However, some markets are seeing higher vacancy rates this month. This includes North Dakota, which has a vacancy rate of 14.6% and the lowest rent, and Charlotte, NC, which has nearly doubled its vacancy rate since last year to 10.6%. ABODO also notes that Charlotte also saw the largest decrease in rent price in June. Sounds like Charlotte is oversupplied.

On the other end, New Hampshire and Rhode Island ranked in with unbelievably low vacancy rates at 2.9% and 2.6%. Unsurprisingly, California has had a consistently low vacancy rate since Q1 but inconsistent rent prices seen as Oakland experienced an 11% drop this month and San Diego increased by only 5%.