Yardi Matrix Forecasts Steady Rent Growth for 2016
- Jan 11, 2016
Santa Barbara, Calif.—U.S. multifamily markets will enjoy moderate growth in 2016—if the domestic economy cooperates and potential hot spots abroad remain calm—according to a new report released by Yardi® Matrix, a business development tool for brokers, sponsors, banks and equity sources that underwrite multifamily investment transactions.
The report, “Winter 2016 Multifamily Outlook: Rent Growth Encore? What’s in Store for 2016,” predicts that increased gross domestic product, moderate growth in apartment supplies, healthy capital markets and 2.5 million new jobs will drive 4.6 percent growth, outpacing the eight-year average of 2.8 percent. Flat wage growth and a strong dollar will likely deny a repeat of the 6.5 percent rent growth recorded in 2015. Other risks include “further economic slowing in China and emerging markets, a recession in Europe, spreading conflict in the Middle East and rising interest rates,” according to the report.