Apartment Housing Demand Remains Strong; Investors Pursue Yield to Broader Range of Markets

ShareShare via LinkedInShare via XShare via SMS

Apartment Housing Demand Remains Strong;
Investors Pursue Yield to Broader Range of Markets

The apartment sector notched another healthy quarterly performance as the resounding strength of the employment market sustains demand for rentals. Class B and C units maintained particularly tight vacancy levels, delivering solid rent growth. Markets with elevated construction levels could face pockets of heightened competition as new apartment facilities go through lease-up.
 
■Although development is elevated, it remains concentrated. Roughly one quarter of apartments slated for delivery this year will come online in only five markets.
■The United States is on track to achieve multifamily rent growth of 3 percent or better for the ninth consecutive year in 2018.
■Historically low apartment cap rates have encouraged many buyers to consider a wider range of locations and asset classes in order to reach targeted yields.

 

ShareShare via LinkedInShare via XShare via SMS
img

Randolph Taylor

Randolph Taylor, CCIM, is a Chicago multifamily investment sales broker with over 25 years of experience advising apartment owners on valuations, marketing strategy, and dispositions across the Chicago metro area.

Related posts

Chicago multifamily architecture illustrating refinance underwriting and owner hold-versus-sell analysis

The New Multifamily Refinance Test: What Chicago Apartment Owners Should Know

Freddie Mac’s October 1st multifamily refinance test uses a 4.73% implied 10-year forward rate. Here is what Chicago apartment owners should evaluate when comparing refinance proceeds, hold economics and current sale value.
Continue reading
by Randolph Taylor
Chicago multifamily property with financing documents illustrating strong fundamentals and a harder debt market

Chicago Multifamily Market 2026: Strong Fundamentals Meet a Harder Debt Market

Chicago apartment fundamentals remain comparatively strong, but financing conditions are still reshaping buyer proceeds, refinance options and execution risk. Here is what owners should evaluate when deciding whether to hold, refinance or sell in the Chicago multifamily market in 2026.
Continue reading
by Randolph Taylor
Chicago multifamily outlook after the September 2026 Fed hike

Chicago Multifamily Outlook After the Fed Hike: 5 Signals Owners Should Watch

The Fed raised its target rate, multifamily supply is slowing, and lending remains active. Five signals Chicago-area apartment owners should watch when weighing a sale, refinance or hold decision.
Continue reading
by Randolph Taylor

Join The Discussion