Commercial Investment Real Estate November/December 2017 | Page 27

ultifamily has been riding a strong tailwind
over the past several years thanks to a strong
job market, household income growth, demo-
graphic shifts, and obstacles preventing rent-
ers from making a switch to homeowner-
ship. The question is how long the apartment
industry will be able to sail along on that cur-
rent, given the steady stream of new supply
hitting the market.
Record levels of new construction have barely
put a dent in national vacancy rates, which
remained at a low of 4.4 percent at midyear,
according to Reis. Some experts believe there
could be softening ahead. But any weakness that
does emerge may be confined to select pockets
as the overall multifamily market, even moving
at a slower pace, is still delivering solid perfor-
mance numbers.
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