The National Multifamily Housing Council’s 2017 Apartment Strategies Outlook Conference focused on a number of multifamily trends for the coming year. Overall, the tone was optimistic for next year, with fundamentals expected to remain strong.
According to Multifamily Executive, one of the major trends panelists discussed was the potential move of residents from the traditional urban core to growing suburban markets. Andrew Livingstone, executive managing director of property management at Greystar said, “In most [urban] markets, we saw decent rent growth, but it was about half of what we saw in suburban markets.” Additionally, Jay Parsons, vice president of MPF Research and YieldStar Investment Analytics at RealPage, pointed out that while renters will pay more in rent for an apartment in the CBD, they are less likely to renew at a higher rent the following year, causing them to deal shop and ultimately to leave.
In Atlanta, the multifamily market has remained stable, with occupancy hovering in the 95 percent range. In the fourth quarter, average effective rents reached $1,104 per-unit, per-month, with additional rent growth expected. Although rent growth in Atlanta has been steady, Jay Denton, senior vice president of Analytics for Axiometrics, said cities like Atlanta, Las Vegas, Orlando and Phoenix all show potential for strong rent growth within the next year or two, according to Multi-Housing News.
Investors are actively seeking well-located urban and suburban properties, like Promenade at Berkeley. Cushman & Wakefield recently arranged the sale of the Duluth, Georgia, property, which is expected to provide an excellent ROI for the buyer. The seller, Investors Management Group, recently invested significant capital into the property’s common areas, including the fitness center and clubhouse/leasing office, and also made significant exterior improvements.