2020 Multifamily Forecast Points to a Changing Industry

January 9, 2020

Berkadia recently released its 2020 Multifamily Forecast report, a comprehensive overview of the hottest multifamily markets in the country. While many familiar metros continue to operate as hubs for apartment construction, new hotspots are appearing all over the country in up-and-coming cities that once went overlooked.

We encourage you to review the full 2020 Multifamily Forecast report found here. You can also review a short preview of what the report has to offer by checking out the following forecast highlights.

Multifamily Trends Taking Center Stage in 2020

  • Aging Boomers Drive Health Care Hiring – “A significant contributor to the growing employment was hiring in the education and health services sector. These jobs, especially in the health care and social assistance industry, were needed as the U.S. population continued to age.”
  • Job-Driven Migration Helps Metros Flourish – “While hiring slowed nationally, several markets were able to grow employment at elevated levels due in part to strong in-migration. Attracting new residents was the caliber of jobs added, ranging from those in the high-tech industry in Austin and Seattle to financial services companies in Dallas-Fort Worth and Charlotte.”
  • Multifamily Fills Housing Gap While Construction Costs Rise – “The cost of construction and shortage of available skilled builders has kept the pace of single-family development limited, but apartment developers worked to fill the housing gap.”
  • Rise of Rent Control Becomes Increasingly Relevant – “With the cost of renting outpacing income increases in many areas, local governments enacted or plan to enact rent growth measures. Oregon was the first state to do so, with New York City and California joining the movement in 2020.”

Top Performing Metros Heading into the New Year

The end of 2019 marked a shift in the status quo across many sectors of the commercial real estate industry. The multifamily market was no stranger to unexpected developments.

Secondary metros like Jacksonville surged ahead of similarly sized metros with regards to employment growth. Many cities like Salt Lake City experienced unexpected, significant annual increases in occupancy.

Enjoy this sample of the standout metros featured in Berkadia’s 2020 Forecast? Check out the full report here.

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