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October 6th, 2016

Multi-Family Housing Trend: Declaration of Rents This Fall

With the onset of rising inflation rates and a peak in employment, there will undoubtedly be a deceleration in rent this fall. More than 2.3 million jobs have been created but even this fact has not contributed to the rising rent prices that are growing faster than the income levels of the consumer.

This deceleration is mostly concentrated in cities where employment is not matching the growth of new apartment units. Cities like Houston will be feeling the effect of this the most.

Not to mention, the amount of investment capital entering commercial real estate has gone down over the last couple months. Yet despite that, U.S real estate markets are still considered safe compared to the global market.

As of now, the real estate market is stable but there’s not telling what the future holds and where the real estate market might be in just a couple months from now. Still, there are concerns over the metropolitan areas where there is low job growth and high luxury supply responsible for creating the flat and declining rates.

Needless to say, the presidential election and Brexit will definitely play a significant contributing factor in job creation, consumer wages, and consumer spending which will undoubtedly affect the multifamily rent’s growth rate in 2017.