For Multifamily Executive, Hamilton Zanze CEO Kurt Houtkooper details the reasons for optimism about the multifamily market and his company’s plans for 2024.Read
Rental Revenues Grow Faster in Suburbs
Rent growth is cooling in urban core apartment markets, where the bulk of new supply is concentrated. Annualized effective rent growth for urban core submarkets averaged 1.8% in March 2014 vs. 6.5% in July 2011. Urban core deliveries are expected to peak this year.
Suburban markets have been able to hold onto or increase rent growth and occupancy since the recovery, as there has been less impact from new supply. Developers have slowed their building activity in urban cores and are waiting for supply to be absorbed, so rent growth can pick up again.
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