The multifamily market is on fire after a very healthy 2017 and great projected strength for the rest of 2018. Rent prices are up, but vacancy rates are slowly increasing as more supply is being delivered, according to Freddie Mac’s Multifamily 2018 Outlook. This positive trend in the multifamily sector will continue in 2018 as completions peak and supply increases slightly faster than demand.
According to Yardi Matrix, an estimated 360,000 units are slated for delivery in 2018 – a 20 percent increase over 2017. Of the markets with the hottest multifamily construction, Dallas is leading the pack with nearly 22,000 units projected to deliver in the metroplex in 2018.
Here are the top 10 markets where construction is hot:
#10 San Antonio
At the beginning of 2018, San Antonio had a total of 185,509 multifamily units with a forecast of 9,385 units projected to complete in 2018. This is a 5.1% change.
Atlanta had 422,154 units at the beginning of 2018 with a forecast of 10,231 units to be completed by year-end. This is a 2.4% change.
#8 Washington D.C.
There are over 500,000 multifamily units in Washington D.C. and nearly 11,300 units are set to complete by 2018, presenting a 2.2% change.
Seattle has nearly 291,315 units and will add 12,362 by the end of 2018. This is a 4.2% change.
#6 Los Angeles
There are currently 407,785 units in LA and nearly 12,500 planned units scheduled to complete by year-end. According to Kidder Mathews research, in Q1 2018, there were 1,595 new construction units and 31,023 under construction units.
Miami had nearly 12,000 multifamily units planned and roughly the same amount under construction by year end 2017. With population gains, the city is experiencing significant increases in demand for multifamily units.
Houston has an astounding 623,369 units with a projected 14,334 units set to complete by the end of 2018. After Hurricane Harvey, there was a huge increase in multifamily demand as many homes were destroyed in the storm.
It may get cold in Denver, but the multifamily market is warming up the area with 242,296 total units and nearly 15,700 units expected to deliver by the end of the year. This is a huge 6.4 percent change.
As populated as Manhattan is, it is no surprise that there are over half a million multifamily units in the city. Over 21,000 units are forecasted to complete in 2018, signifying a 4 percent change.
#1 Dallas-Fort Worth
Dallas is one of the fastest growing cities in the world. There are over 7 million people who call DFW home, only increasing the demand for housing units. With so many corporate headquarters relocations coming to the DFW area, the demand for multifamily units is ever increasing in the metroplex. Right now, D-FW has over 700,000 units with another 22,158 to be added by the end of 2018. This is a 3.1 percent change.