Magazine article Mortgage Banking

Freddie Mac: 'Strong' Year for Multifamily

Magazine article Mortgage Banking

Freddie Mac: 'Strong' Year for Multifamily

Article excerpt

Freddie Mac Multifamily, McLean, Virginia, predicted another strong year for the multifamily market in 2015, but one slightly slower than last year and with more dispersion across geographic markets.

"The multifamily market will see another strong year in 2015, albeit at lower levels than in 2014," said Steve Guggenmos, senior director of Freddie Mac multifamily investments and research. "Even as many more properties are completed and new supply is delivered to the market, demand and absorption rates will remain high through 2015 due to favorable demographics and an overall sturdier economy."

But Guggenmos predicted more dispersion across metros in 2015 than in recent years "as some smaller metros that have been slower to recover pick up steam."

The amount of apartment supply delivered this year will surpass pre-recession averages, but a strengthening economy and favorable demographics among renters will produce another good year for apartment owners and lenders, the company's economic outlook said.

Both multifamily starts and completions should continue their upward trend this year. Apartment property starts will likely continue to rise through 2015 and perhaps 2016, and completions will remain above the average for several years to come, Freddie Mac said, noting that supply could begin to outpace demand this year. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.