Marcus And Millichap Sees Class-A Overbuilding In Some Markets But Positive About Multifamily Overal
Marcus & Millichap's Mr. John Sebree - first vice president/national director of Marcus & Millichap’s National Multi Housing Group - remains positive on multifamily investments owing to strong GDP and job growth despite multifamily's strong run in the last few years.
He doesn't see overbuilding a problem except for Class-A product in some of the hotter rental markets such as Denver, Seattle, Austin, Chicago, among others. Also, rising lender caution will help keep new supply in check according to Mr. John.
However, despite the strong supply of Class-A product in certain cities, Mr. John expects that new supply will be absorbed and rents will continue to grow in the long-term after a phase of increased concessions and dampened rental growth in the short-run.
Mr. John remains particularly bullish on Class-B and Class-C product as this part of the multifamily spectrum hasn't seen much new supply. Noticing strong investor interest in these markets.
The entire article about his talk at Marcus & Millichap/IPA Multifamily Forum Chicago can be read here.
