The trend towards multi-family housing continues to grow in both small and large markets to the tune of a +6% growth rate, according to the National Association of REALTORS ® (NAR) Research Group. Vacancy rates are low, lending restrictions are loosening and prices are increasing.
Take a look at the country’s lowest vacancy rates in Q1 2019:
– Boston-Cambridge-Newton MA 1.7
– New Haven-Milford CT 1.8
– Akron OH 2.0
– Cape Coral-Ft. Meyers FL 2.4
– San Jose-Sunnyvale-Santa Clara CA 2.5
– Hartford – Both East & West CT 3.1
– Denver-Aurora-Lakewood CO 3.2
– Bridgeport-Stamford-Norwalk CT 3.5
– Cleveland-Elyria-Providence OH 3.5
– Knoxville TN 3.6
– Los Angeles-Long Beach-Anaheim CA 3.6
– Sacramento-Roseville-Arden CA 3.7
– San Francisco CA 3.9
– Seattle-Tacoma-Bellevue WA 3.9
The highest rental vacancy rates in Q1 2019:
– Houston 10.6
– Columbia SC 10.9
-New Orleans 11.3
– Birmingham AL 11.5
– Cincinnati 11.5
– Oklahoma City 11.7
– Tampa/St. Petersburg 11.8
– Louisville-Jefferson 11.9
– Austin-Round Park 12.3
– Kansas City 13.1
– Little Rock 13.2
– Charleston-North Charleston 13.6
– Syracuse 17.9
– Toledo 18.1
The NAR Research Group predicts housing starts will increase in 2019. NAR sees that increase shifting to single-family housing given the pent-up demand for existing and new homes. With that shift, NAR sees home prices continuing to appreciate but at a more modest pace and toward more affordable levels. One consequence of those shifts will be that vacancy rates will trend upwards nationally.
NAR sees the Opportunity Zone tax breaks on capital gains as bolstering commercial and residential sales in 2019-2020. Again, Opportunity Zone residential projects will focus on multi-family housing developments.
