JLL: Multifamily Has $35B Quarter, Pullback Ahead
Date Posted: May 16, 2016
Posted In: News,
From ConstructionDIVE: Real estate company JLL found that the first quarter of 2016 was the best ever first quarter report — $34.5 billion— for the multifamily housing market.
The private equity market has doubled down on multifamily since the first quarter of 2015 and accounted for $8.2 billion in the first quarter of 2016.
JLL said “suburban, garden-style” properties are the most attractive of the multifamily investment options because those types of developments have the “highest yields” and lower rents. This is a compelling choice for renters who have been priced out of the nearest urban “core” market.
JLL said secondary markets across the Sunbelt are performing especially well with price growth in some markets up to 40%. The Western markets of Sacramento, Portland and Seattle are also attractive to investors, as rents there have increased as much as 11% over the last year. In addition, despite price growth, the real estate company said, vacancies are still low, coming in at 4.4% in 2015.