Published on August 12th, 2015 |0
Report: Multifamily sector here still in golden age; rents outpace U.S.
Atlanta is outpacing the U.S. in terms of effective rent growth for multifamily properties with a year-over-year growth of 7.6 percent in April 2015 compared with the national average of 4.6 percent, according to Witten Advisors, the story points out.
In 2014, the Atlanta Apartment Association’s multifamily outlook concluded that Atlanta is in its golden era in terms of performance and development. This report a year later confirms that.
Davis says the outlook on U.S. job growth, an essential factor for a healthy multifamily market, is bright, with a projected addition of 2.8 million jobs in 2015 and 2.6 million in 2016, according to the U.S. Bureau of Labor Statistics (BLS) establishment and payroll survey and a separate consensus forecast.
The BLS has also tracked young adult hiring, which has accelerated since 2014 at a rate of more than 1 million hires per year.
Atlanta was the No. 4 metro in terms of net employment growth for the 12 months ending in June, with 77,300 jobs added. Atlanta trailed only New York (168,900), Los Angeles (106,500) and Dallas (91,400). The job growth rate in Atlanta during that time frame was 3.1 percent, which outpaces the national average of 2.1 percent, according to the BLS.
As far as population growth among the 20- to 34-year-old cohort, which is generally believed to be the prime age of active multifamily renters, Witten Advisors tracks Atlanta’s growth at 5.4 percent from 2010-2014. The rate is slightly less than the national average of 5.6 percent during that same time frame.
Davis also predicts that absorption will exceed net supply through 2015. Witten Advisors forecasts that renters will absorb roughly 6,000 units in Atlanta in 2015, which surpasses the expected net completions of 5,000 units, according to the Southeast Real Estate Business story.
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