July 7, 2015
It doesn’t look like new multifamily supply is impacting rent growth in the commercial real estate sector. Year over year nationally, rents ticked up 3.8 percent during the first quarter and four percent seasonally adjusted, according to Sperry Van Ness.
Cap rates across all markets last year came in at a strong 5.5 percent, and the report said that much of what is driving this trend is Millennial demand for renting as opposed to owning. This has especially created a huge development pipeline in Texas, including the Austin, Dallas and Houston markets.
But this could potentially change, Sperry Van Ness warned. Some of the Millennials that are driving this growth could soon look at home ownership as a more viable living situation.
Tags: Apartments & Multifamily