Research Brief August 2017 HOUSING Developing Trends ■ Apartment construction appears likely to peak this year as more than 370,000 units are slated for delivery, up from 290,000 apartments in 2016. The majority of new supply is concentrated in luxury, Class ARead more
Market Trends
Selling Multifamily Property: Guide with eXp Commercial
Learn the process of selling your multifamily property with eXp Commercial. Maximize value and createRead more
Continue reading
Market Trends
Selling an Apartment Building FAQ’s
Are you thinking of selling your multi-family property? Here are some of the most frequentlyRead more
Continue reading
Market Trends
If You’re Hesitant To Hire A Broker For Your Multifamily Property Read This
The most important benefit of exclusively listing your property with a broker is representation.
Continue reading
Market Trends
Should I Sell or Should I Hold? When is the best time for asset repositioning?
It doesn’t really matter what the current real estate market is like if you areRead more
Continue reading
Market Trends
Why Should I Sell My Multifamily Property?
There are a number of reasons why people decide to sell their multifamily property, butRead more
Continue reading
Apartment investments will maintain a positive outlook in 2018 as the combination of steady job creation, healthy demographics and an accelerating pace of household formation sustains renter demand. The consistent ow of newly developed units, a top of mind consideration for many investors, increased competition for Class A apartment assets in cities with disproportionate deliveries. The effects of the additions tend to be concentrated, and the deliveries will wane in the coming year, supporting sound performance metrics in
most markets. Class B and C workforce housing will continue to outperform as vacancies in these properties remain at historical lows, enabling owners to justify strong rent growth.
A combination of job growth, healthy demographics and accelerated household formation creates a rosy outlook for apartment investments in the coming year. For Chicago, location and property type should be taken into consideration. This is according to Marcus & Millichap’s 2018 Multifamily North American Investment Forecast.
Labor market at turning point as wage growth hits recovery high. Meaningful wage growth has been a missing ingredient in the expansion for the past eight years. Yet now, with unemployment holding steady at 4.1 percent, employers are finally feeling the pressure to increase wage hikes to attract and maintain their human capital. Further evidence of tight labor conditions can be found in job openings at or near record levels of 6 million positions over the past 12 months.
Existing single-family home sales increased a modest 1 percent over 2017 as limited for-sale inventory kept the market from gaining traction. While many of the factors contributing to a restriction in sales velocity remain the same, changes to the tax code remove some of the incentives to homeownership, and anticipated interest rate increases this spring will bring additional challenges to the future of the housing market.
Led by numerous corporate relocations from the suburbs, job growth in Chicago’s core has ignited apartment construction as young professionals seek an urban lifestyle.