Marcus & Millichap: Apartment Fundamentals Remain Strong But Core Downtown Markets To Face Compe

John Sebree, National Multi Housing Director at Marcus & Millichap expects apartment fundamentals to remain strong despite tax and immigration policy uncertainties.

Further, Mr. Sebree views suburban and class-B assets as promising investments while expects core downtown markets to witness greater competition from increased supply of new class-A product.

The article predicts that

1. Occupancy rates will drop an estimated 60 basis point but still stay strong overall

2. Demand will plateau and rent growth will cool to 3.0-3,5% as job growth is anticipated to slow

3. Recent pace of top-tier, urban core new construction will increase leasing pressure in these downtown locations

The article identifies suburban class-A and class-B communities in all locations as strong investments.

The entire article can be read here.