After a strong year in multifamily housing, expect an even stronger one in 2020, according to RealPage Chief Economist Greg Willett.
In an interview with HousingWire, Willett said the apartment market is in great shape, and even the luxury market will see competition in 2020.
Occupancy rates were as high as 96.3% this year, a figure Willett said is well above the long-term norm.
And much of the new properties set to hit the market next year will be of the higher-end variety. According to Willett, about 75% to 80% of 2020’s additions will command luxury product rents, leading to increased competition in that market segment.
“Increasing completions point to a competitive leasing environment for luxury product in 2020. About 550,000 market-rate apartments are under construction right now. Approximately 366,000 of them are scheduled to finish in 2020,” Willett said. “That targeted delivery volume jumps sharply from 2019 completions of around 279,000 units.”
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