Multifamily Market Draws Optimism From Freddie Mac

Multifamily Market Draws Optimism From Freddie Mac

February 2016

The year 2015 is one that multifamily investors will remember fondly.Multifamily

Higher-than-expected demand helped absorb most of the rental supply, keeping vacancy rates low. Meanwhile, rent continued to rise in many markets. Experts are split as to what investors should expect from multifamily in 2016. But Freddie Mac struck a cautiously optimistic tone in its newest Multifamily Outlook 2016 report.

Freddie Mac based its outlook on continued economic growth and the following key drivers:

  • Strength in the job market
  • Reduced affordability of owning a home

So, more people have jobs, and fewer people can afford to own homes. That makes renting an attractive option, especially in metropolitan markets.

Multifamily

Freddie Mac is cautiously optimistic about the multifamily market.

Freddie Mac does expect growth rates to moderate in 2016, but not as much as the more dire projections indicate. Relatively low vacancy rates in most markets will contribute to rent growth in the year ahead.

You might ask why Freddie Mac is being cautious. Well, it admits that turmoil in the financial markets is a cause for some concern. Still, it’s not nearly enough for Freddie Mac to be scared of the multifamily market anytime soon.

Read more about Freddie Mac’s multifamily outlook from Multi-Housing News.

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