By Brook Furniture Rental – http://www.bfr.com
Multifamily Rent Growth 2017 – What Can We Expect?
In the last few years, the market for multifamily housing has been extremely favorable with developers scrambling to complete new projects and take advantage of some of the highest rents in history. What remains to be seen is will the current uplift continue through 2017, and what can we expect for the coming year? California remains the “darling” dominating the list of rent growth leaders with Oakland topping the list. Though San Francisco and San Jose are still in the top ten, development oversupply and staggering rents are beginning to affect the pace of growth in these markets.
According to a National Apartment Report by Abodo, the apartment search website, monthly rents in San Jose and San Francisco have shown a marked decline in August and September of this year which substantiates experts predictions that rent hikes are flattening in these top markets. Beyond a saturated rental market, the out-of-site rates in the Bay area alone are straining the pocketbooks of income earners who spend approximately half of their monthly income after taxes on rent.
The rental situation has forced many professionals to seek less expensive accommodation in smaller developments as well as other areas such as Oakland that are capitalizing on the overspill.
According to a second-quarter report by Novato-based RealFacts, Oakland’s rents were up 5.4 percent on a year-over-year basis but down from the previous two-quarters. Right behind Oakland, Las Vegas is positioning itself as the second rent-growth leader for next year which has experienced a considerable upswing in the last 18 months.
Forecast Rent Growth Leaders in 2017
Chart courtesy of Multifamily Executive
Brook Furniture Rental helps many communities and new developments with increased lease-ups through our Brook Advantage Program. For more information, visit our website or contact us at: 877.285.7368.