Why The Multifamily Market Still Has Room To Run

Population and demographic trends like reduced homeownership andmillennials delaying marriage and children create long-term structural advantages for multifamily that other sectors lack, according to Colliers International’s chief economistAndrew Nelson. As the company readies its latest multifamily spotlight, GlobeSt.com spoke exclusively with Nelson, along with Cindy H. Cooke, senior EVP of multifamily investments, andWill Mathews, VP and principal for Colliers’ multifamily advisory group in the East region, about what puts multifamily in the driver’s seat among commercial asset classes, and why investors still see opportunity in the sector.

As a result of urbanization and millennials’ propensity for renting over buying, Nelson says multifamily occupancy rates are near a historical high. While he does expect them to level off, the multifamily market will remain fundamentally sound.

“Colliers research shows that cap rates for apartments averaged 5.4% in Q3, the lowest of any property type, which reflects the high regard the sector is held in by investors, particularly foreign investors who are willing to pay for stable cash flows.”

Click Here to Read More – GlobeSt