Weekly Roundup Intro: Week of May 20, 2019

This week’s multifamily roundup offers insights on the sector’s performance in the first quarter, southeastern cities’ apartment demand and millennial housing preferences. First, Arbor’s Chatter blog provides a snapshot of the U.S. apartment market’s fundamentals to start 2019, which include continued rent growth and low vacancy. Next, NREI notes that the Southeast of the U.S. is seeing rising demand for multifamily, largely driven by strong job growth in the metros. HousingWire reports that while industry players are banking on Millennials to reinvigorate the homebuying market, the segment may not pursue homeownership, citing an article from The Wall Street Journal. Then, Reis takes a look at the top- and bottom-performing markets in the first quarter, with Phoenix taking the top spot. Finally, RealPage spotlights Salt Lake City, UT, pointing out that despite strong apartment occupancy, the city is finding it challenging to retain residents, particularly young renters.

U.S. Multifamily Market Snapshot — Q1 2019

Arbor Chatter – May 21

“The first quarter of 2019 marked the 37th consecutive quarter of rent growth for the U.S. multifamily market. Vacancy remained at historic lows, amid high levels of development activity.”

Southeastern Cities Experience Strong Job Growth, Seeing a Rising Demand for New Apartments

NREI – May 21

“In Charlotte, the number of jobs in the metro area grew by 167,000 over the five years that ended in 2018. But the number of housing units, of all kinds, grew by just 93,000.”

WSJ: That Wave of Millennial Homebuyers May Never Come Crashing

HousingWire – May 21

“While many have said this massive group will reinvigorate the housing market, this has yet to happen, the WSJ points out, adding that perhaps the action has been delayed because the recession hit just as many Millennials were entering the workforce.”

Apartment Top & Bottom Markets, Q1 2019

Reis – May 21

“The aggregate YoY effective revenue growth for the nation came in at 4.1 percent this quarter, a little lower than last quarter’s 4.4 percent.”

Occupancy High, Retention Low in Salt Lake City

RealPage – May 21

“While apartment occupancy is solid in Salt Lake City, it’s tough to hang on to individual renter households in this young, on-the-move market, resulting in one of the lowest resident retention rates in the country.”